Marcus & Millichap Capital Corp. Closes More Than $244 Million in May Transactions

Penn State University satellite campus, Harrisburg, PA

           

PHILADELPHIA, PA– Marcus & Millichap Capital Corporation (MMCC) arranged in excess of $244,000,000 in debt during the month of May 2013, according to William E. Hughes, senior vice president and managing director of MMCC.

William E. Hughes

            “May was a busy month for us,” says Hughes. “We closed more than 100 transactions, thanks in a large part to our firm’s initiative and deep market knowledge. The range of these transactions, in terms of property sectors and challenges, is a testament to the power of the Marcus & Millichap platform,” adds Hughes.

John Banas and Kristopher Wood, both directors in MMCC’s Philadelphia office, have arranged the following refinance debt:

• ·      $11.7 million to refinance a 66-unit student housing property in Middletown, Pa.
• ·      $6 million to refinance a 580-unit hotel in Syracuse, N.Y.
• ·      $5.7 million to refinance a 31,000-square foot Class A office building in Phoenixville, Pa.

         

John Banas

             “The Middletown, Pa. property is located at the Penn State University satellite campus in Harrisburg, Pa. where there are less than 10,000 students,” says Banas. “This made it challenging to get agency financing but a perfect fit for one of our banking relationships.

“There was a substantial portion of equity cash out to the sponsors and the property just opened in September 2012, so there was really no financial history,” continues Banas.

Kristopher Wood

“Even though the property had just opened, is located in a small market and had equity cash out, we were able to arrange long-term financing at a great interest rate that converted to non-recourse after two years,” concludes Banas. “The refinance that we arranged paid back the construction loan as well as a majority of the developer’s cash equity.”

Syracuse, N.Y. has thriving business traveler and weekend markets and is increasing tourist and pedestrian traffic downtown through a series of festivals.

“The owner/developer of the 80-unit hotel in Syracuse built and stabilized the hotel in 2010,” says Wood. “It is now the No. 1 performing hotel asset in its class in the market. 

"The lender got comfortable with where the building is located, which is in a thoroughfare and we were able to arrange a unique, institutional-quality loan on the property in what would be a tertiary market,” adds Wood.

          “The 31,000-square foot Class A office building in Phoenixville is located in a residential area, an hour west of Philadelphia where there is no office market to speak of,” Wood continues.

“The lender was able to get comfortable with the transaction by understanding the tenant, a private company that was not viewed as a credit tenant.

“The tenant has been in the building for 20 years and previously owned the building; the new owner expanded the space from 21,000 to 31,000 square feet, where the tenant signed a brand new 15-year lease at the occupancy of the new added space,”  Wood concludes.

  For a complete copy of the company’s news release, please contact:

Gina Relva,

Public Relations Manager

(925) 953-1716