RIVERSIDE, CA, Aug. 20, 2010 – Marcus & Millichap Capital Corporation (MMCC) has arranged $7,125,000 in refinancing for
Tuscan Townhomes (top left photo), a 63-unit apartment complex in Riverside.
Michael Derk, (
middle right photo) vice president of capital markets in the Long Beach office of MMCC, arranged the loan.
“This deal was a challenge because we had to secure a sizable loan in a tertiary market with several hurdles. First, our client wanted full leverage of 75 percent in a challenged market.
"And since this asset is fairly new, this difficulty was compounded by the asset’s limited operating history. Second, the building had recently achieved full occupancy while undergoing a management change resulting in books and records that were both limited and inconsistent.
“These types of challenges are usually overcome by the strength of our borrower’s management experience,” continues Derk. “While our borrower was financially very strong, he did not have the level of multifamily experience typically required for this type of transaction. The fact that he was an absentee owner added to the challenge.”
“We overcame these obstacles by emphasizing the positives of the deal, which were clearly the asset quality and financial strength of the borrower.
"We also leveraged off of MMCC’s strong correspondent relationships. After identifying the correct source we were able to structure the debt and secure a below-market interest rate on a non-recourse basis, a critical component to the borrower.”
Terms of the refinancing include a 4.7 percent interest rate fixed for a term of seven years and an LTV of 75 percent. The loan amortizes over 30 years.
Two CVS Stores in Pennsylvania and New Jersey Receive Loans Totaling $9.8M
PHILADELPHIA, Aug. 20, 2010 – Marcus & Millichap Capital Corporation (MMCC) has arranged $9,848,000 in loans for two single-tenant retail properties. The properties and loan amounts are:
CVS Philadelphia, Pa., $6,400,000
CVS Swedesboro, N.J., $3,448,000
James Conley, a director in the firm’s Philadelphia office, arranged the loans.
“MMCC was able to provide nonrecourse permanent mortgages for both properties,” says Conley.
The CVS Philadelphia loan has a 6.2 percent interest rate, fixed for five years with a 30-year amortization.
The CVS Swedesboro loan is fixed for 20 years at 6.25 percent with a 20-year amortization.
Both loans were financed at 70 percent loan to value.
Contact: Stacey Corso, Public Relations Manager, (925) 953-1716
