HOLLYWOOD-The developers of a 54-unit condominium project called the Hollywood Condominium have landed a $27.4-million loan to take out their construction financing and pay off several investors despite credit market turmoil that made the deal “very challenging,” according to Marcus & Millichap Capital Corp. Daniel Litman, a senior director in the West Los Angeles office of Marcus & Millichap Capital Corp., tells GlobeSt.com that MMCC took the deal to market in the midst of some of the greatest turmoil in the capital markets and ultimately found a commercial bank to fund the refinancing.

Litman and Michael Derk, a senior director in the Long Beach office of MMCC, arranged the financing package, which is a 12-month adjustable-rate loan at three-fourths of a percentage point over prime, with a six-month extension, at a loan-to-value ratio of 61%. The 54-unit complex, built from the ground up, is at 6735 Yucca St. and is a project of Metro Modern Developers of Woodland Hills.

The transaction occurred “during the unraveling of the credit markets” at a time when “Most lenders wouldn’t consider the loan,” Litman says. He tells GlobeSt.com that several CMBS lenders were in the mix when MMCC first began seeking financing for the deal, but the Wall Street sources quickly disappeared because of the capital markets turmoil.

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