RANCHO PALOS VERDES, CA– Marcus & Millichap Capital Corporation (MMCC) has refinanced a prime multifamily asset (top left photo) for $39.45 million in Rancho Palos Verdes.
Jake Roberts, vice president capital markets, and Anita Paryani, a senior director, both in the West Los Angeles office of MMCC, arranged the loan.
“Property owners continue to take advantage of historically low interest rates,” says Roberts.
“Right now is the best time to lock in these rates before the 10-Year Treasury begins to rise.
"In this situation, the borrower’s current debt had just become pre-payable and earlier this year the borrower did not know if he could refinance his existing debt without additional cash.
“We were able to bring life insurance companies to the table who agreed to underwrite to lower DSC ratios.
" In the end, the rate ended up nearly 75 basis points lower than originally anticipated and we had more lenders to pick from to execute the loan. ”
Located in Rancho Palos Verdes, the 215-unit garden apartment complex has ocean views from many of the units.
The asset was constructed in the 1970s and received extensive renovations between 2002 and 2004. In addition, it has maintained a historically high occupancy rate, even during the economic downturn.
“The asset has been very well maintained and life insurance companies and the agencies were both aggressive in pursuing the loan due to the extremely unique location and desirable nature of the asset,” adds Roberts.
The loan was rate-locked nearly three months before closing and is fixed for 10 years, amortizing over 30 years with an attractive interest rate.
Contact: Stacey Corso , Public Relations Manager, (925) 953-1716
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