NEW YORK, N.Y., July 30, 2009 – Marcus & Millichap Capital Corporation (MMCC) has arranged a $4.53 million loan for the acquisition of an 8,700-square foot mixed-use multi-family and retail building located at 229 Lenox Ave. in New York City.
Brian Ursino, an associate director for the firm’s Manhattan office, arranged the financing package for the mixed-use building.
“The property presented many unique challenges in creating a comprehensive financing package for our client,” states Ursino.
“Our client, a successful art gallery owner, wanted to open a gallery on the first floor and also reside in the building. This required MMCC to source lenders who would finance a combination of loans to include a small business loan, a construction loan for renovations and an equity line of credit.”
“By utilizing MMCC’s platform, we were able to create a knowledgeable advisory team consisting of a lender whose underwriters were familiar with our client’s business, and New York State agencies that subsidized a portion of his interest payments for the first few years of his loan,” continues Ursino.“The loan program we created gave our client interest on $500,000 at a specified rate for a period of time which paid some of his interest expense.”
Marcus & Millichap Capital Corporation arranged a total of $4.53 million of financing on a $1.8 million purchase.
Financing was provided by a SBA loan of $1.44 million, a construction loan of $2.34 million and a $750,000 equity line. Interest rate was at 5.3 percent fixed rate with a 30-year amortization schedule.Loan-to-value was 80 percent plus 20 percent in a working capital equity line for a total of 100 percent financing.
“MMCC was able to arrange a creative financing transaction for our client that is becoming increasingly rare, if not extinct, given the current state of the capital markets,” adds Ursino.
Press Contact: Kathy Molitor, Marcus & Millichap Capital Corporation, (925) 953-1704
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