LOS ANGELES-NorthMarq's regional office here has arranged refinancing worth $40.5 million for two multifamily properties in the state.

Ory Schwartz, SVP and senior director of the Los Angeles regional office of NorthMarq, arranged first mortgage refinancing of $17.7 million for Austin Commons Apartments in Hayward and $22.8 million for Gateway Apartments of San Leandro. Austin Commons is a 208-unit, market-rate multifamily property located at 50 Austin Avenue in Hayward. Gateway Apartments is a 236-unit, primarily market-rate property located at 902 Davis Street in San Leandro.

Financing was based on a 10-year term and a 30-year amortization schedule.

“NorthMarq was able to get Freddie Mac comfortable with the combination of cash out, primarily month-to-month leases at the subject properties, and the TIC borrower structure,” said a statement from Schwartz. “Despite the material prepayment penalties on the existing loans coming due in 2015, the sponsor wanted to lock in on the low interest rates available in the current market versus the unknown of rates and underwriting parameters in 2015.”

NorthMarq provides mortgage banking and commercial loan servicing in 33 offices. They claim an average of $9.5 billion in annual production volume and a loan portfolio of over $41 billion. It is a Freddie Mac Program PlusSeller-Servicer, and through its affiliation with Fannie Mae, DUS lender AmeriSphere Multifamily Finance.

As reported earlier this month by GlobeSt.com, NorthMarq and Schwartz arranged financing for a land purchase by Midtown Shopping Center Associates, a mid-city mall anchored by a Ralph's Signature Store.