LOS ANGELES-Marcus & Millichap Capital Corporation has arranged debt on two properties for two different clients totaling $12,835,000, according to William Hughes, senior vice president and managing director of MMCC. One is a bridge loan refinance to accommodate the entitlement of two vacant city blocks and four adjacent parcels in downtown Los Angeles for a substantial development. The other is the refinance of 14 units of a 15-unit condominium community in Studio City, CA.

Dan Litman, vice president capital markets in MMCC's West Los Angeles office, arranged both loans.

“Dan demonstrated both initiative and deep market knowledge in closing these loans,” comments Hughes. “His ability to complete these two vastly different transactions is a testament to his skills as an originator and to the power of the Marcus & Millichap platform.”

“The challenge for the bridge loan on the land in Los Angeles and the downtown Los Angeles properties was finding a lender willing to cross collateralize the vacant two city blocks with some of the borrower's income-producing properties, two of which had suffered substantial fire damage in 2007,” says Litman. “We were able to demonstrate the value of the fire-damaged parcels to the lender through the borrower's plans to redevelop the entire site, which encompasses most of a full city block in downtown Los Angeles.”

The five-year loan provides for one-year interest only and amortizes over 25 years at 5.75% interest, with an LTV of 55%.

“For the Studio City condominium asset, the current construction loan was coming due and the client was interested in a lower interest rate,” continues Litman. “The original loan submission was to encumber all 15 units, contingent upon the borrower purchasing one unit back from the owner. When the borrower could not come to an agreement to repurchase the unit, the debt became a broken condo loan, and it was a challenge to keep the lender moving forward,” adds Litman. “Fortunately, we had closed a similar transaction last year and were able to use that experience to complete the closing.”

The 10-year multifamily loan amortizes over 30 years at 3.5%, fixed for the first five years, with an LTV of 75%.

Marcus & Millichap Capital Corporation is a subsidiary of Marcus & Millichap Real Estate Investment Services, the nation's largest brokerage firm focused exclusively on real estate investment services. Through its network of national and regional lenders, MMCC provides capital markets products for a wide variety of investment properties, including apartments, shopping centers, office buildings, industrial facilities, single-tenant net-lease properties, seniors housing, hotels/motels, manufactured home communities and self-storage facilities. Last year, MMCC closed 912 commercial real estate financing transactions.

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Marcus and Millichap Arranges Two Refis

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