Marcus & Millichap Capital Corp. Arranges $23.4M Loan for Apartment Asset in Buena Vista, CA

BUENA PARK, Calif.– Marcus & Millichap Capital Corporation (MMCC) has arranged a $23.4 million fixed-rate loan for the acquisition of a 184-unit apartment complex located at 7400 Artesia Blvd. in Buena Park.

Jake Roberts and Anita Paryani, senior directors in the firm’s West Los Angeles office, arranged the financing package for the Brookstone Apartments (top photo).

“The borrower purchased the property as a value-added opportunity with more than $12,000 per unit in capital reserves for repairs and upgrades,” states Roberts. “We convinced the lender that the borrower would be able to achieve post-rehab rents based on the surrounding market and improvements planned for the property.” As a result, MMCC was able to provide the borrower with the terms they required in the midst of this challenging lending environment.

Financing for the property was provided by a commercial lender at a 5.85 percent fixed interest rate for the first two years, then LIBOR plus 300 basis points for the remainder of the term. The terms of the loan are three years interest only with a loan-to-value transaction of 67 percent.

“MMCC was able to secure a loan commitment in less than a week when the initial lender’s loan fell through,” says Roberts. “We also secured a two-year fixed-rate loan with the lender’s debt funded day one, and the borrower’s equity funded over time, thus causing a significant increase in the borrower’s internal rate of return.”

Press Contact:

Kathy Molitor
Marcus & Millichap Capital Corporation
(925) 953-1704