Marcus & Millichap Capital Corporation (MMCC), a division of Marcus & Millichap (NYSE: MMI), has arranged $12.8 million in preferred equity and agency financing for the acquisition of a 165-unit multifamily community located in Dallas, Texas.
Built in 1973 and renovated in 2021, Polk Villas has undergone an extensive capital improvement plan totaling over $2.1M since 2021. Currently 95% occupied, the 16-building community offers onsite amenities of a clubhouse, resident business center, picnic and grill areas, a playground and onsite laundry. The sponsorship intends to implement a capital improvement plan upon acquisition which focuses on upgrading the interiors of the property.
MMCC worked on behalf of the borrower, a partnership led by Henley Properties, to secure the financing. Henley Properties has transacted on more than $250M of commercial real estate with a focus on DFW value-add multifamily acquisitions. The $9.3 million agency financing provides for a 6.15% fixed rate, three years interest-only followed by a 30-year amortization, and a seven-year term. An additional $3.5M in preferred equity was raised.
MMCC’s capital markets team was led by Tyler Rentfro and analysts Travis Headapohl and Diego Garcia based out of MMCC’s Dallas office. Rentfro’s practice includes originating debt and equity nationwide across various property types, including multifamily, build-for-rent, industrial, retail, and office.
“In this credit environment, leverage is very difficult to secure. However, as a significant number of joint venture equity funds have ventured into the structured credit space, we approached the market and engineered above market leverage at a single digit blended rate, fully non-recourse to the borrower. Even though this was a 1970s product, we were able to create a compelling story through sponsorship submarket experience, quality in-place cash flow and belief in stabilized rents.” said Rentfro.
About Marcus & Millichap Capital Corporation
Marcus & Millichap Capital Corporation (MMCC) is a subsidiary of Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada. MMCC provides commercial real estate capital markets financing solutions, including debt, mezzanine financing, preferred and joint venture equity, sponsor equity, loan sales and consultative and due diligence services. In 2022, MMCC closed 2,143 transactions totaling $12.8 billion. To learn more, please visit: marcusmillichap.com/financing
