MARCUS & MILLICHAP CAPITAL CORPORATION |
Contact: (925) 953-1716 |
$26.5 MILLION IN BOND FINANCING ARRANGED BY
MARCUS & MILLICHAP CAPITAL CORP
VALMEYER, Ill., June 10, 2010 – Marcus & Millichap Capital Corporation (MMCC) has arranged a $26.5 million refinancing package for the U.S. National Archives and Records Administration (NARA) National Personnel Records Center (NPRC) Annex Facility in Valmeyer. The property is a 398,862-square foot Class A office building.
Chad O’Connor, a senior director in the firm’s San Diego office, arranged the loan for the property.
“Bond financing has many long-term benefits and provides a hedge against inflation in today’s volatile market,” says O’Connor. “Below-market interest rates, higher loan to values, nonrecourse and better execution are just a few of the benefits offered in executing a bond deal. However, bond financing is only available for larger single-tenant investment-grade-rated tenant buildings,” adds O’Connor.
The loan has a 5.35 percent interest rate, fixed for 18 years with an 18-year amortization.
“The property in this transaction possessed unique construction and build-out features,” continues O’Connor. “The facility was built in the side of a mountain inside retrofitted limestone mining caves. The caves provide superior climate control for archival record storage, which giving the records a longer lifespan. We were able to source a lender that had recently done a similar transaction for NARA in a location nearby. The lender was familiar with the tenant, their operations and the location, which made the closing process much easier,” adds O’Connor.
Marcus & Millichap Capital Corporation is a subsidiary of Marcus & Millichap Real Estate Investment Services, the nation’s largest brokerage firm focused exclusively on real estate investment services. Through its network of national and regional 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. Last year, MMCC closed more than 378 transactions in commercial real estate financing.