Northmarq Lends $78M to Refi Lower East Side Multifamily Portfolio

Developer Paul Stallings has secured a $78.4 million of permanent financing to refinance a portfolio of Lower Manhattan multifamily assets, Commercial Observer has learned.

Northmarq originated the 10-year, fixed-rate, Fannie Mae-backed loan through its agency lending arm for five Lower East Side multifamily properties, sources told CO. 

The deal was arranged by Tom Peloquin, co-managing director at Northmarq, for Stallings’ buildings at 190 East Seventh Street, 516 East 11th Street, 49 Ludlow Street, 516 East 11th Street and 57 Pitt Street. The loan was issued through the entity, Downtown Apartments LLC.

Northmarq declined to name the company behind the LLC linked to the portfolio, but a property records search linked the buildings to Stallings. 

“Northmarq, with our Fannie Mae DUS [delegated underwriting and servicing] platform, provided our borrower with fixed-rate, full-term interest-only loans at competitive terms while meeting the sponsor’s maturity deadline on existing debt,” Peloquin said in a statement. 

The largest asset involved in the loan is Tompkins Square Plaza, a 124-unit building at 190 East 7th Street that consists of 124 units. The 1998-built property’s amenities include a fitness center and laundry room.

Stallings has developed apartment buildings on the Lower East Side since the early 1980s. He also developed the 20-story Hotel on Rivington that has faced some financial challenges driven in part by lost business during the COVID-19 pandemic, Crain’s New York Business reported last July. 

Stallings did not immediately return a request for comment

Andrew Coen can be reached at acoen@commercialobserver.com.