LOS ANGELES—NorthMarq arranged a $42.1 million bridge loan for Point Dume Shopping Center in Malibu, Calif. and 301 Ocean in Santa Monica, Calif. The loan allowed borrower, Marquis Property Co. Ltd., to encumber three properties in order to have the capital to purchase 301 Ocean, a proposed luxury condominium development.
“This was a remarkable feat by both the borrower and the lender,” said Robert Hervey, executive vice president and managing director of NorthMarq's Los Angeles office. “The borrower was very astute in negotiating not only with the seller, but parties that controlled 'first rights.' The lender was very creative and able to provide a structure that provided alternatives and optionality required to pull off the acquisition. Additionally, the structure covers the expected needs for moving forward the development of 301 Ocean.”
The deal also required fast action on the buyer’s part, as large non-refundable deposits were required to secure the purchase. The Bridge loan has a three-year, interest-only term.