Marcus & Millichap Capital Corp. Arranges $8.8M Refinancing Package

LA VERNE, CA – Marcus & Millichap Capital Corporation (MMCC) has closed an $8,797,500 refinancing for a multi-tenant retail center in La Verne.

Erik Rogers, a director in the Ontario office of MMCC, arranged the loan for the Inland Empire property.

“The borrower assumed a conduit loan that was interest-only, with a maturity date of 2010. The transaction was challenging because the borrower had to pay down the loan considerably in light of current stringent underwriting standards,” explains Rogers.

“Since many of today’s retail loans are financed with 25-year amortization schedules, the borrower had to come out of pocket with the additional equity.”

A commercial bank provided the 10-year, fixed-rate loan, which has an LTV of 65 percent and a 25-year amortization schedule.

“We were able to structure a 10-year fixed rate loan with a 10-year term, even with 85 percent of the center facing lease-rollover risk in the next four years,” he notes.

Rogers discussed the proposal with more than 30 of the firm’s relationship lenders, including commercial banks, life insurance companies and private lenders. “In the end, an Inland Empire-based commercial bank MMCC has a strong relationship with provided the loan,” he says.

“The borrower initially took the transaction to the bank first and was not able to garner any interest from the lender,” Rogers notes. “By leveraging MMCC’s strong local relationships and creating a solid marketing package, we demonstrated to the lender that this is an excellent deal.”

The borrower’s track record of managing real estate also attracted the bank to this transaction.

“The borrower is a professional investor who manages eight retail centers in the Inland Empire, which is the lender’s primary market. The bank analyzed the properties and liked the historical operating performance of this center, as well as the performance of the entire portfolio.

“Both the lender and borrower understand that this was a win/win transaction in this challenging environment,” he adds.

Contact: Stacey Corso, Public Relations Manager, (925) 953-1716