Marcus & Millichap (MMI) - Get Report, financing subsidiary Marcus & Millichap Capital Corporation (MMCC), has arranged a $34.5 million construction loan for a 48-unit condominium development project in Pasadena, California.
"After completing the first phase of the project, with financing from another intermediary, the developer asked us to create a more flexible and competitive financing option for the second phase," said Stefen Chraghchian in MMCC's Encino office. "Phase I involved converting the adjacent office tower to 57 condominium units and Phase II will add 48 units above a parking structure." Chraghchian and Sharone Sabar, senior managing director capital markets, arranged the loan. "The structure of the deal was complex as the unsold units from Phase I were attached to the Phase II loan as collateral," continued Chraghchian. "We negotiated a payout structure for unit sales that would pay down the loan balance over time while allowing the developer to access more immediate sales proceeds."
The 30-month loan was structured with a 5% adjustable interest rate and 40% loan-to-value. "Being in the midst of the Covid-19 pandemic added an additional challenge," added Sabar. "We emphasized the importance of timing to all parties and pushed to close as quickly as possible." The six-story, 62,075-gross-square-foot project is expected to be completed 2021. It will include an amenity deck with a pool, hot tub, and outdoor entertainment area. The average unit size will be 1,243 square feet.
With over 2,000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 9,726 transactions in 2019 with a value of approximately $50 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry's most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com.
About Marcus & Millichap Capital Corporation
Marcus & Millichap Capital Corporation (MMCC) is a subsidiary of Marcus & Millichap (MMI) - Get Report, a leading commercial real estate investment services firm with offices throughout the United States and Canada. Through its network of national, regional and local lenders, MMCC provides capital markets products for a wide variety of investment properties, including apartments, shopping centers, office buildings, industrial facilities, single-tenant net-lease properties, seniors housing, hotels/motels, manufactured home communities and self-storage facilities. In 2019, MMCC closed over 1,900 commercial real estate financing transactions totaling $7.1 billion. To learn more, please visit: www.mmCapCorp.com.
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