NorthMarq Capital arranges $80m refinance
NEW JERSEY — Gary Cohen, senior vice president/managing director of NorthMarq Capital’s New Jersey-based regional office, arranged the $80 million refinance of a portfolio of five affordable properties, containing a combined 519 units. The properties are located throughout Hoboken. The transaction was structured with a 12-year term on a 25-year amortization schedule. NorthMarq arranged financing for the borrower, Applied Housing Management, through its correspondent relationship with a life insurance company.
“The properties have been managed by Applied Housing since the early 1970’s and were initially subject to Housing Assistance Payment (HAP) contracts,” explained Cohen. “Presently, each property is subject to regulatory agreements where 40 percent of the units must be rented to Section 8 tenants while the remaining units can be rented at market. The lender was very impressed with the condition of the assets and locked the rates on the loans in the fall, prior to the run up in treasuries.”