NorthMarq adds acquisition and construction dollars to EB-5 project
Robert R. Hervey, executive vice president/senior managing director of NorthMarq Capital’s Los Angeles based regional office, negotiated $33.8 million in acquisition/construction financing for Palm Springs Andaz, a 150-unit multifamily property to be located at Palm Canyon Drive and Alejo Road in Palm Springs, Calif.
The transaction, involving strong cash equity from the sponsors and EB-5 funds, was structured with a three-year interest only term and 25-year amortization during extension options. NorthMarq arranged financing for the borrower through its relationship with Midfirst Bank. Hyatt Andaz is the flag.
“To bring this transaction together, the borrower developed a strong relationship with the city of Palm Springs,” explained Hervey. “They began the process during the recession which generated interest in financing the gap with EB-5 using a qualified regional center. The lender, who is very knowledgeable in high quality boutique hotels, completed the picture. This terrific lender took the time to understand the structure and was patient while the EB-5 vetting process was completed.”