Northmarq arranges $50 million in financing for age-restricted multifamily property, The Preserve at Smithtown
![180-unit age-restricted multifamily community](/sites/default/files/styles/4x3_half/public/images/The%20Preserve%20at%20Smithtown.jpeg?itok=UJan-Kiw)
NEW YORK (July 23, 2024) — On behalf of The Preserve at Smithtown, Northmarq’s Chuck Cotsalas and Ernest DesRochers secured financing for the 180-unit, age-restricted (55 and above) multifamily property. The property is currently under construction and approximately 50% complete. Northmarq arranged financing through a correspondent relationship with a life insurance company.
“This transaction met many of the borrower’s needs,” said Cotsalas. “The lender provided long-term fixed rate financing, which removed any further interest rate risk, market risk and materially reduced the construction coupon by 3%. Additionally, they provided $5 million working capital immediately, hastening the borrower’s income stream and stabilization and recapturing $10 million of equity.”
The insurance company provided $50 million total, which included $35 million in initial funding, $5 million in construction draws and an additional $10 million cash-out upon stabilization. The 10-year fixed rate financing was priced at 200 BPS over the U.S. 10-year Treasury, 2-years interest-only and followed by a 30-year amortization schedule. All funds were locked at closing including the $10 million of earn-out proceeds.
The Preserve at Smithtown is newly built and features 18 garden-style buildings at 297 Smithtown Blvd. in Nesconset, N.Y. Centrally located near Long Island’s East End, the boutique apartment community offers modern one- and two-bedroom apartment homes with spacious living areas, stainless steel appliances and large walk-in closets. The Preserve at Smithtown also boasts a fitness center, walking trails, a pickleball and bocce ball court, outdoor swimming pool and a pet park.
Northmarq is a full-service capital markets resource for commercial real estate investors, offering seamless collaboration with top experts in debt, equity, investment sales, loan servicing, and fund management. The company combines industry-leading capabilities with a flexible structure, enabling its national team of experienced professionals to create innovative solutions for clients. Northmarq’s solid foundation and entrepreneurial approach have built a loan servicing portfolio of more than $76 billion and a two-year transaction volume of more than $52 billion. Through the 2022 acquisition of Stan Johnson Company, Northmarq established itself as a provider of opportunities across all major asset classes. For more information, visit www.northmarq.com.