Dealmaker: Marcus & Millichap Closes $42.6M in Washington, Virginia

Marcus & Millichap, Calabasas, Calif., arranged a $19 million construction loan to build a six-story, 155-room Hilton Garden Inn in Lynnwood, Wash. 

Robert Bhat, a director in Marcus & Millichap Capital Corp.’s Miami office, placed the debt.

“Construction loans for hospitality projects of this size are generally more challenging to obtain today than they were in the past, primarily due to high-volatility commercial real estate guidelines,” Bhat said. “However, in this case, there is an experienced hotel developer/operator with a strong track record who knows the market well.” He noted that the asset will be adjacent to the Lynnwood Convention Center, which has hosted more than 4,000 events and 750,000 guests over the last 10 years. 

Bhat estimated construction will take 18 months. 

In Virginia, Marcus & Millichap procured a real estate investment trust buyer for a nine-property portfolio leased to 7-Eleven Inc. 

The stores in Virginia’s Tidewater region–three in Hampton, two in Williamsburg two and one each in Poquoson, Newport News, Gloucester and Surry–traded for $23.6 million.

“These locations have stood the test of time and are well-positioned for continued success,” said Derrick Dougherty, First Vice President of Investments in the firm’s Philadelphia office. He closed the deal with Senior Managing Director Mark Taylor M&M Associate David Becattini. Bryn Merrey, Senior Vice President and Division Manager in Marcus & Millichap’s Washington, D.C. office, is the firm’s broker of record in Virginia.

“The stores and gas stations contained in this portfolio have operated successfully for decades in strong and well-established markets,” Dougherty said.