Jeff Cherner, senior vice president and managing director, and Rup Patel, assistant vice president, of NorthMarq’s Chicago regional office arranged first mortgage refinancing of $31.65 million for a 23-property industrial portfolio. The portfolio consists of 900,000 square feet and has a diverse mix of more than 90 tenants in single- and multi-tenant industrial properties throughout the suburban Chicago area. The borrower wanted the flexibility to sell individual properties, partially prepay the loans and fix attractive long-term rates for the portfolio.
Financing was based on five- and seven-year terms and a 25-year amortization schedule. NorthMarq arranged the financing for the borrower, VIP Holdings I, through its relationship with a correspondent life company lender and a regional bank.
“This multiple loan financing, sourced from two different lenders, required coordination of multiple parties and their respective processes,” Cherner said. “First we arranged loans satisfying the needs of the borrower, a joint venture between VIP and a publicly traded REIT. And second, we coordinated all parties to successfully close multiple loans in a single transaction to simultaneously pay off the existing lender.”
