IPA Arranges $39M Refi for Playa Del Rey Apartments
The borrower, a repeat client of IPA, received the loan structured with a full 10-year term, interest-only, at a rate of 3.8 percent.
By Evelyn Jozsa
After arranging the sale of a 288-unit Austin multifamily community, Institutional Property Advisors, a division of Marcus & Millichap, arranged the refinancing of Del Rey Club apartments in Playa Del Rey, Calif.
Located at 8020 W. Manchester Ave., Del Rey Club is close to Santa Monica, Marina del Rey and to Manhattan Beach. The luxury community is also twenty minutes away from the University of California and Century City. Del Rey Club is comprised of a mix of studio, one-, two-, and three-bedroom apartments, featuring interiors with wood floors, granite fireplaces, granite countertops, brushed stainless hardware and private balconies.
Community amenities such as:
- swimming pool and spa
- barbecue and picnic areas
- courtyard fountains
- car was facility
- designer lobbies
Seizing the opportunity
The $38.75 million loan was structured as a full 10-year term interest only rate of 3.84 percent. The loan to value is 55 percent. “The borrower’s existing debt was maturing and he wanted to take cash out in order to expand his portfolio and reinvest into other assets,” said Michael Derk, senior managing director at IPA Capital Markets, in prepared remarks. “We were able to use the borrower’s strong ownership experience and forecasted rental increases to determine loan proceeds and maximize leverage.”
Derk, together with Nick Gray, associate director at Marcus & Millichap represented the owner, a repeat client of the company.
Image courtesy of IPA