Dealmaker: Marcus & Millichap Capital Corp. Arranges $51M for Multifamily

Marcus & Millichap Capital Corp., Calabasas, Calif., arranged $50.5 million to refinance two southern California multifamily properties.

Sharone Sabar, Senior Managing Director of Capital Markets in MMCC’s Encino, Calif., office, said apartment asset financing remains “widely available,” with capital providers including agency lenders, local, regional and national banks and insurance companies. “In many cases, lenders remain cautious and have adopted tighter underwriting standards,” he said. “However, lenders also continue to aggressively compete to place capital in the multifamily sector, which is a favored asset class.”

In the first transaction the firm secured $27.5 million to refinance a 136-unit Orange County asset. The low-leverage loan–55 percent loan-to-value–included five years of interest-only payments. The second transaction was a $23 million five-year fixed-rate loan that refinanced a 69-unit Los Angeles property.

Marcus & Millichap also brokered a multifamily property sale in West Lafayette, Ind. A joint venture between Muinzer, West Lafayette, Ind., and South Street Capital, Chicago, acquired a 152-unit, 528-bed student housing portfolio for $33.5 million, or $220,395 per unit.

Brent Silcox, First Vice President of Investments in Marcus & Millichap’s Indianapolis office, and Associate Austin Meeker represented the seller and procured the buyer. Silcox said the portfolio properties date to between 1983 and 1993.

“Vacancy at the portfolio has remained near zero percent and it was leased for the fall 2018 school year by late January 2018,” Silcox said. “The rapid lease-up reflects the stability of investment and reflects well upon the opportunity to add value and grow revenue.”