Discovery West Pays Off Loan Four Years Before Maturity

Discovery West Apartments is a 209-unit class-A multifamily property located at 580 8th Ave. NE in Issaquah, WA. NorthMarq recently funded a $61.3 million cash-out loan with a 35-year fixed rate in the mid-2 percent range using the FHA 223(f) program through its in-house HUD/FHA division.

The low rate coupled with the loan proceeds warranted paying off an existing fixed-rate loan four years before maturity. The development also obtained Energy Star for existing buildings certification, which reduced the mortgage insurance premium charged by HUD.

NorthMarq also placed the previous loan with a correspondent insurance company in 2015 when the project first opened. Stuart Oswald, senior vice president/managing director of NorthMarq’s Seattle office arranged the most recent loan.

“NorthMarq’s FHA loan production has grown substantially in the past 24 months as more owners are drawn to the program’s high leverage and low long-term fixed rates relative to other loan programs,” said Oswald.

The property’s hilltop location offers many view units and larger-than-average unit size. Discovery West is in the Issaquah Highlands suburban submarket, a close-in community located 10 miles east of Bellevue and 17 miles east of Seattle.