MARCUS & MILLICHAP CAPITAL CORPORATION |
Contact: (925) 953-1716 |
MARCUS & MILLICHAP CAPITAL CORP. ARRANGES
$14.3 MILLION IN CASH-OUT REFINANCING
The Park Regents Apartments loan is the largest apartment loan closed this year in Santa Clara County.
LONG BEACH, Calif., July 16, 2010 – Marcus & Millichap Capital Corporation (MMCC) has arranged $14.3 million in cash-out refinancing loans for three multifamily properties. The properties and loan amounts are:
Rick Padilla, a senior director in the firm’s Long Beach office, arranged the loans.
“Prior to coming to MMCC, the Park Regent Apartments borrower had shopped around for a maximum loan to value in order to get maximum cash out,” relates Padilla. “The borrower wanted maximum dollars but did not want a government service entity (GSE) lender because of the prepayment penalty and a balloon payment. We were able to achieve a 75 percent LTV and maximum cash out from a bank with a short prepayment penalty and fully amortizing loan with no balloon payment,” continues Padilla. “The bank’s cash-out policy called for 65 percent LTV but we were able to negotiate an exception. We see many borrowers that want to maximize their cash out but most are limited to lower LTVs unless they choose a GSE lender,” adds Padilla.
The Park Regent Apartments loan has a 5.45 percent interest rate, fixed for 30 years with a 30-year amortization.
“The Rachel Woods and Ridgewood Castle Apartments borrower tried closing this loan with two banks and two GSEs before coming to MMCC,” Padilla goes on. “We were able to close the loan with a GSE at the same terms as the borrower initially applied for but with a lower interest rate. The borrower was able to use the cash out to save a vacant commercial property that they were about to lose,” adds Padilla. “The loan was approved in 32 days and closed in 40 days. The borrower’s savings as a result of the new financing was in excess of $10,000 per month,” concludes Padilla.
The Rachel Woods and Ridgewood Castle Apartments loan has a 65 percent LTV, a 5.60 percent interest rate fixed for 10 years and a 30-year amortization.
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.