M&M Capital Arranges $17.5M Loan

TAMPA, FL-Marcus & Millichap Capital Corp. says it has arranged fixed-rate financing of $17.5 million for the acquisition of three class B office/flex buildings at 4801 George Road. Princeton, NJ-based Independence Realty Inc. bought the 213,294-sf complex from an unidentified private investor group, according to Hillsborough County property records.

James Sotos, an associate at MMCC’s Chicago office who arranged the finance packaging, says his firm structured a minimal recourse loan for the George Road assets, which are 95% occupied. He points out that this type loan is unusual for the Tampa market and most others throughout Florida and nationwide.

“It has become a fairly recourse market for the most part,” Sotos tells GlobeSt.com, especially given the continual contraction in capital markets. He says some lenders demand full recourse on commercial real estate deals lately, though buyers with strong credit histories are still in better positions to negotiate financing.

An undisclosed commercial bank provided financing for the acquisition at an interest rate just under 5.9%, according to Sotos. Terms of the loan were five years with a 30-year amortization schedule and 74% LTV, he says.