Marcus & Millichap Capital Corp. Arranges $12.7M in Loans

NEWPORT BEACH, CA, Aug. 9, 2010 – Marcus & Millichap Capital Corporation (MMCC) has arranged $12,724,000 in multifamily property loans. The properties and loan amounts are:

Los Angeles Apartment Portfolio, Los Angeles: $7,799,000
Pine Square Apartments, Gresham, Ore.: $4,925,000 (Map top left)

Bradley Willson, a director in MMCC’s Newport Beach office, arranged the loans.

“The Los Angeles Apartment Portfolio multifamily assets had accumulated a vast amount of trapped equity,” says Willson.

“Working with the lender and the appraiser, we utilized the investment brokerage and market research divisions within Marcus & Millichap to isolate each property within its specific submarket and asset size, analyze the recent economic indicators and illustrate the owner’s historical high occupancy, collections and continued improvements.

"The final component was demonstrating to the lender and appraiser the barriers to entry and supply and demand factors that validated the rents,” adds Willson.

The Los Angeles Apartment Portfolio was refinanced by a loan with a 5.95 percent interest rate, fixed for 10 years with a 30-year amortization. The loan to value is 75 percent.

“When Pine Square Apartments was in escrow, the residents learned that the property was being sold,” continues Willson.

“This led to a spike in tenant turnover, which directly impacted the immediate trailing collections and the net operating income. MMCC was able to offset this anomaly by demonstrating to the lender the borrower’s track record of high occupancy and collections,” adds Willson.

 “We were also able to bridge a gap between the buyer and the lender for a marginal increase in initial reserve requirements.”

The Pine Square Apartments loan has a 5.12 percent interest rate, fixed for 10 years with a 30-year amortization. The loan to value is 79 percent.

Contact:  Stacey Corso, Public Relations Manager, (925) 953-1716
http://www.mmcapcorp.com/