Marcus & Millichap Capital Corporation (MMCC), a leading provider of commercial real estate capital markets financing solutions, arranged $7.8 million for the refinancing of a 32-unit multifamily property located in Los Angeles, California.
Michael Derk, executive managing director in MMCC’s Nashville office secured the financing with a local bank on behalf of a private client.
“This deal came with unique challenges as the borrower recently foreclosed on the property, which had been over-leveraged by the previous owner/developer due to construction cost overruns and a lack of stabilization,” said Derk. “Financing through traditional channels proved impossible and our borrower turned to us for a solution. We were able to craft a customized financing structure to help our client stabilize the asset.”
Terms of the 5-year loan include a 5.75% interest rate with a 30-year amortization period, a 65% loan-to-value and a 2-year step down prepayment penalty.
The property is located in Hollywood near the Hollywood Freeway, minutes from Griffith Park and Downtown Los Angeles.
