"Our client required a construction-to-permanent loan toreposition an existing single-tenant office building tomulti-tenant medical office that was 50% preleased," said GregoryNalbandian, managing director of NorthMarq New Jersey, in astatement. "The client was very sensitive to personal guaranteesand desired a 75% loan to value upon stabilization."
NorthMarq was able to structure a two-year, sub-5%, no floor,interest-only construction loan with minimal guarantees that burnoff upon NOI and debt service coverage covenants at stabilization.Jim Poole, also of NorthMarq, noted that, "We successfullynegotiated funding nearly 80% of the loan proceeds at closing." Atstabilization, the loan rolls into a five-year, fixed-ratepermanent paper.
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