Marcus & Millichap Helps Meet Borrowers’ Needs in $6.78M Refinances
- Aug 27, 2010
Canoga Park, Calif. – Marcus & Millichap Capital Corporation (MMCC) has arranged $6,775,000 in loans to refinance two multifamily assets. The properties and loan amounts are: a 44-unit apartment complex in Canoga Park, Calif., for $3,000,000, and a 132-unit multifamily property in Hurst, Texas, for $3,775,000. Sharone Sabar, a director in the firm’s Encino office, arranged the loans.
“The Canoga Park property was stabilized but the lender was concerned that the trailing 12-month operating statement did not underwrite to the borrower’s loan request,” says Sabar. “I was able to mitigate the property’s poor operating history with the borrower’s financial strength and the strong rental market in Canoga Park. Through negotiation, the lender agreed to use a trailing three-month income history rather than a trailing 12-month,” adds Sabar. “This enabled us to underwrite to the borrower’s loan request.”
The Canoga Park apartment loan has a 5.05 percent interest rate, fixed for seven years with a 30-year amortization. The loan to value is 72 percent.
“The Hurst property is located in a tertiary Texas market and was challenging to place,” continues Sabar. “The property had not been performing well due to poor third-party management and the borrower needed long-term nonrecourse debt and a quick close. MMCC was able to close the deal within 45 days, two days prior to the maturity date of the borrower’s previous loan,” concludes Sabar.
The Hurst multifamily property loan has a 5.27 percent interest rate, fixed for 10 years with a 30-year amortization. The loan to value is 65 percent.