Dealmaker: Marcus & Millichap Closes $58M in Multifamily, Retail, Office Deals

Marcus & Millichap, Calabasas, Calif., brokered two property sales totaling $47.7 million and secured $10 million in debt for California properties.

In Tustin, Calif., the firm brokered the $27.5 million sale–nearly $299,000 per unit–of Palm Gardens Apartment Homes.

“Palm Gardens Apartment Homes is located in one of the strongest and most desirable submarkets in Orange County,” noted Marcus & Millichap Senior Managing Director of Investments Tyler Leeson, who represented the private investor seller with M&M Vice President of Investments Alex Mobin. “New ownership has the opportunity to unlock tremendous value by updating rents to reflect market levels.”

Leeson, Mobin and M&M Senior Vice President of Investments Steve Bogoyevac also procured the private investor buyer for the property located less than two miles from Tustin Legacy, a master-planned community with 4,500 housing units and a major retail center.

“Although interest rates are expected to rise, I believe the Orange County market will remain strong,” Leeson said. “Tenant demand for Orange County apartments and continued rent growth will mitigate the impact of rising interest rates.”

Marcus & Millichap Senior Managing Director of Investments Mike James and Associate Scott Doerner sold a triple-net-leased, 112,000-square-foot WalMart Supercenter in Norwalk, Calif. for a privately owned real estate development company. A southern California private investor paid $20.2 million for the asset, or $181 per square foot.

“Well-located net-leased assets such as this with excellent brand recognition and strong tenancy continue to receive multiple offers as investors seek to deploy capital amid continued historically low interest rates,” James said.

Built in 1998 on 7.6 acres, the Norwalk WalMart Supercenter is visible from Interstate 5 and more than 650,000 people reside within five miles.

In Sunnyvale, Calif., Marcus & Millichap Director Behzad Boroumand arranged $10 million in debt to refinance a 23,500-square-foot single-tenant office building.

“The borrower had been in an adjustable-rate, shorter-term loan and wanted to fix in a rate for a long period ahead of any potential rate increase,” Boroumand said. “They also wanted a shorter amortization in order to aggressively pay down the principal and minimize interest expense.”

Boroumand sourced new 13-year financing with 10 years fixed and a 15-year amortization schedule.