Sunnyvale, CA Apartment Complex Receives $9.2M Loan

SUNNYVALE, CA – Marcus & Millichap Capital Corporation (MMCC) has arranged a $9.2 million loan to refinance an 82-unit apartment complex located at 150 Acalanes Dr. in Sunnyvale.

Marshall De Wolfe, a director in the Palo Alto of Marcus & Millichap Capital Corporation, arranged the financing package for the Woodacre Apartment complex.

“In the past, much emphasis was placed on financing loans with fixed-rate debt. This deal was financed with a one-year adjustable rate,” states De Wolfe. “There has been a re-emergence of the floating-rate loan as a viable option to fund deals, versus long-term fixed debt.”

Financing for Woodacre Apartments was provided by a commercial bank at a fixed interest rate of 5.56 percent for the first year, then an adjustable rate of 2.25 percent during the 12-Month Treasury Average (MTA) index. Terms of the loan were for 30 years with a 30-year amortization schedule. The loan-to-value was 65 percent.

“Due to MMCC’s long-standing relationship with the lender, we were able to keep this deal at the top of its priority list,” according to De Wolfe. “The lender had a pre-payment penalty, which MMCC was able to have waived.

“In today’s lending market, it has become increasingly important to proactively manage deals through each phase of the financing process,” says De Wolfe. “As a result of our due diligence, MMCC was able to close the deal ahead of schedule, meeting all of our lender’s requirements while surpassing our client’s expectations.”

Press Contact: Kathy Molitor, Marcus & Millichap Capital Corporation, (925) 953-1704