TRACY, Calif., Oct. 9, 2014 – Marcus & Millichap Capital Corp. (MMCC), a leading provider of commercial real estate financing and capital markets expertise, has arranged $38,500,000 in construction financing for 300 multifamily units in Tracy, a city in the Central Valley of Northern California. Jeffery Shaddy, director in MMCC’s Sacramento office, arranged the financing.
“MMCC brought national resources to this local project to create a competitive financing market and win the business,” says Shaddy. “From our large regional data base and market resources we provided a preponderance of market economics and demographics, land and building costs, rent per unit and per square foot, occupancy, detailed line item expenses, sales capitalization rate and price per square foot comparisons to achieve more than a 33 percent increase in NOI and value from the appraisal firm. The borrower desired little or no recourse and requested higher LTC leverage and we sourced a lender who could meet these terms,” Shaddy concludes. The three-year interest-only loan has two one-year extension options, a one month LIBOR-based adjustable interest rate, 25 percent recourse and a loan-to-cost of 70 percent.
About Marcus & Millichap Capital Corporation
Marcus & Millichap Capital Corporation is a subsidiary of Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada. 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. In 2013, MMCC closed more than 1,100 commercial real estate financing transactions.