LOS ANGELES, CA– Marcus & Millichap Capital Corporation (MMCC) has arranged $49,733,000 in refinancing for two Northern California multifamily properties.
A 263-unit apartment complex in San Jose, Calif., received $31,560,000 and a 138-unit property in Hayward, Calif., obtained $18,173,000.
Jake Roberts (middle left photo) and Anita Paryani (top right photo), vice presidents capital markets in the firm’s West Los Angeles office, arranged the refinancing.
“The property owner already had a full-leverage loan in place and didn’t want to contribute cash to the refinance,” says Roberts. “The goal was to take advantage of the market’s lower interest rates. MMCC structured a loan that enabled the borrower to utilize the lower interest rate on a seven-year term and at closing and receive cash-out proceeds of nearly $1,000,000,” adds Roberts.
“MMCC worked through every lending option available, including capital from life companies, banks and agency debt,” says Paryani. “In the end, we offered aggressive five-year fixed-rate nonrecourse debt that allowed for a larger amount of cash out, but the borrower decided to take a seven-year option with an agency, just to have a longer fixed-rate term.”
“We are seeing a number of clients move to refinance assets—even with small prepay penalties—to lock in lower, long-term fixed-rate loans,” continues Roberts.
“One year ago we looked at refinancing these assets for our client and long-term debt would have required the borrower to put in nearly $2,000,000 to complete the refinancing. This year, at the end of the day, our client was able to cash out,” Roberts concludes.
The loan is fixed at 4.22 percent for seven years, amortized over 30 years. The loan to value is 75 percent.
Press Contact: Stacey Corso , Marcus & Millichap Capital Corporation
(925) 953-1716
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