James DuMars, senior vice president/managing director of NorthMarq Capital’s Phoenix office arranged the $7.6 million refinance on the property known as Yarborough Plaza. The low-leverage loan was structured with a 10-year term with 5-years interest only followed by a 30-year amortization schedule. NorthMarq arranged financing for the borrower, a prominent real estate developer in Phoenix, through its relationship with New York based Bancorp. Ranch Market, Joanne Fabric, Ross and Dollar Tree represent the property’s major tenants.
“I arranged the existing CMBS debt for this asset 10 years earlier and this time around the interest rate was nearly 1% less. This is a good case study of the market and how many borrowers are able to pay off their maturing loans that were done during the peak years and obtain a more superior loan today,” said DuMars. “Due to global financial market volatility the CMBS market has been a bit choppy in terms of spreads widening but the interest rate of 4.35% is still very attractive.”