NEWPORT BEACH, CA—Robert Hervey, executive vice president/senior managing director of NorthMarq Capital’s Newport Beach based regional office arranged the refinancing of three retail and mixed use properties, Harbor Place, La Paz Plaza and Plaza Alicia to provide combined loans of $27.125 million. NorthMarq worked closely with the borrower and the CMBS lender on all three transactions.
Harbor Place: This 7,990 square foot retail property, located at 1902 & 1906 Harbor Blvd, Costa Mesa, California, was refinanced at $4.2 million. The transaction was structured with a 10-year term and 30-year amortization schedule. Financing was provided by CCRE on a cash-out 1.25 debt coverage ratio. The loan paid off the existing loan.
La Paz Plaza: This 51,766 square foot mixed use property located at 26131, 26137, 26161 La Paz Road, Mission Viejo, California was refinanced at $17.7 million. This CCRE loan had similar terms as Harbor Place; however, this loan required additional structure due to some unanticipated last minute tenant movement.
Plaza Alicia: This 11,572 square foot retail property, located at 23981 Alicia Parkway, Mission Viejo, California was refinanced at $5.25 million. This transaction was also structured with a 10-year term and a 30-year amortization, with terms similar to Harbor Place.
By completing all three loans at the same time with the requested proceeds, the borrower was able to exit very restrictive construction/interim financing. The borrower was pleased that the conduit lender, CCRE, was able to preserve the needed proceeds by creatively adjusting loan amounts and providing certainty of execution with additional structure.