Saturday, December 8, 2012

Marcus & Millichap Capital Corp. Arranges Two Retail Center Refinancing Loans in California Totaling $17.9 Million



Anita Paryani Rice
LOS ANGELES, CA – Marcus & Millichap Capital Corporation (MMCC) has arranged two retail strip center refinancing loans totaling $17.9 million. One loan is for $10.4 million and the other is for $7.5 million.

Anita Paryani Rice, a vice president capital markets in MMCC’s West Los Angeles office, arranged the loans with Jake Roberts, a vice president capital markets, and Jerry Wise, a first vice president investments, both in the same office.

Jake Roberts
 The loans were arranged to refinance two retail strip centers; one in Santa Clarita, Calif. and the other in Simi Valley, Calif.

The Santa Clarita loan was structured with a five-year term and will amortize over 30 years. The LTV is 65 percent.

The loan for the Simi Valley asset was structured with a 10-year term and will amortize over 25 years at an interest rate of Libor plus 2.75 percent. The LTV is 65 percent.

Jerry Wise
“The 1966-built Santa Clarita property is anchored by a grocery store that could not provide a sales history,” says Paryani Rice, “along with another, smaller anchor that had declining sales. The property also included some ‘elbow space’ with a history of being difficult to lease,” adds Paryani Rice. “Despite these factors, MMCC was able to create a sense of comfort for the lender, in terms of both the property and the market.”

“The Simi Valley asset is currently in transition,” Paryani Rice continues, “as the borrower negotiates an expansion and lease extension for a major tenant. Furthermore, the borrower requested that the loan’s terms include release provisions and exclude a prepayment penalty. MMCC was able to secure these terms in spite of the borrower’s non-optimal position, giving the property’s family ownership the all-important flexibility to release buildings or sell anytime,” Paryani Rice concludes.
         

Press Contact:

Marcus & Millichap Capital Corp.
(925) 953-1716


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