Risk-Averse Lenders Aggressively Pursue Class-A Multifamily

Tralee Village Apartments is a 130-unit affordable transit-oriented multifamily community.

DUBLIN, CA—There are a greater proportion of renters now more than ever, a trend that will most likely continue as long as the cost of homeownership remains unaffordable for many young professionals. And, as an ever-growing number of employers are being priced out of the San Francisco office market, these firms are turning to more cost-effective locations such as the Tri-Valley business parks of Hacienda and Bishop Ranch. These emerging employment centers further expand the renter pool available to communities such as Tralee Village Apartments, an affordable transit-oriented 130-unit multifamily community.

In a recent acquisition of Tralee, the tight timing of the best-and-final bidding process meant that the borrower, JB Matteson Inc., required real-time information on the acquisition debt. NorthMarq Capital reached out to several long-time life company relationships and provided the borrower with multiple competitive quotes within 24 hours of the request. After the seller selected JB Matteson as the buyer, NorthMarq Capital was able to provide an executable term sheet from PPM Finance within one business day. As a result, a team led by managing director Dennis Williams and vice president Tom Wight in NorthMarq Capital’s San Francisco office arranged a $31.5 million permanent loan for the acquisition of the property. This is the borrower’s sixth Bay Area multifamily acquisition.