Wednesday, April 20, 2011
Danny Abergel, a director in the firm’s Encino office, arranged the refinancing.
“The property had extensive tuck-under parking which created substantial seismic issues,” says Abergel. “Most lenders require that the building be retrofitted prior to close but MMCC was able to source an agency lender that agreed to close the transaction first. The borrower used the refinancing proceeds to retrofit the property post-closing,” adds Abergel.
“As seismic requirements have tightened, properties that passed the test a few years ago will now fail,” Abergel continues. “Property owners are often faced with the choice of retrofitting or facing future financing difficulties.”
“We solved the dilemma by bringing in an engineer who designed a retrofit plan that satisfied the lender and then we negotiated an economically feasible course of action for the borrower,” he says.
The loan is for 10 years, amortized over 30 years. The LTV is 70 percent.
Press Contact: Stacey Corso, Marcus & Millichap Capital Corp. (925) 953-1716