The Farash Corp. and NorthMarq Capital's upstate office completed the closings on mortgage refinancings for two multifamily properties owned by Farash affiliates. Taking advantage of the low leverage on these properties, and advantageous terms provided by NorthMarq as a "preferred lender" for the Federal Home Loan Mortgage Corp. (Freddie Mac), Farash obtained $18 million in loans, secured by mortgages on Holyoke Park, a 720-unit garden apartment complex in Greece, and Country Manor, a 328-unit garden apartment complex in Webster. Loan terms included a 30-year amortization and five-year fixed interest rates ranging between 4.6% and 5.08% with a weighted average interest rate of 4.83%.
Mark Foerster, interim executive of Farash, said, "With assistance from NorthMarq, we have been able to lock in very favorable interest rates for these loans, and prepay existing loans on these properties that had above market interest rates of 9.4% and higher. This refinancing also allows us to pay off other high-cost company debt and fund the costs of desirable capital improvements to our properties."
NorthMarq VP, Michael James, who arranged the financing, said, "This was an opportune time for Farash to consider these loans. Even though the broader commercial loan markets have been shaken by the fall-out from the subprime mortgage crisis, NorthMarq and Freddie Mac have been operating at a full throttle, and aggressively pursuing loan originations for quality projects that are not over leveraged." Tags: