ANAHEIM, CA-Marcus & Millichap Capital Corp. has arranged a $15.5-million first trust deed to facilitate the purchase of an apartment community here. GlobeSt.com was unable to determine before deadline any further details on the property or the identity of the borrower, but will add details to the story as they become available.
The 10-year loan amortizes over 30 years at a fixed rate of 3.5%. The LTV is 77%.
According to Michael Derk, a VP capital markets in MMCC's Long Beach, CA, office, who arranged the loan, “With interest rates at a historic low, the borrower wanted to take advantage of fixed debt to acquire a new property. The deadline on the new acquisition was unusually tight at 40 days, and to add to the challenge, the underwriting and approval process ran through the holiday season when every day is at a premium with most lenders.”
Derk added that MMCC “leveraged its relationship with the lender to close the transaction by the required deadline. This resulted in the saving of more than $1 million in potential penalties and did so with better-than-market terms, in spite of the newly acquired asset's history of management.”
As GlobeSt.com reported in January,as well as the December issue of Real Estate Forum online, concerns over slow job growth and tepid economic recovery did little to dampen optimism of the 1,700-plus multifamily professionals that attended the RealShare Apartments 2012 conference in Los Angeles in late October 2012. It was, in fact, the focal point of a keynote presentation given by research specialist Hessam Nadji of Marcus & Millichap Real Estate Investment Services Inc. The SVP and managing director asked, “Can Apartments Withstand the Economic Headwinds?” and the answer was a resounding yes, no matter how strong those headwinds may be.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
