Marcus & Millichap Capital Corp., a provider of commercial real estate financing, has arranged a total of $50.5 million in capital to refinance two multifamily properties in Southern California.
The first transaction, in the amount of $27.5 million, refinanced a 136-unit asset in Orange County, Calif. The low-leverage loan — 55 percent loan-to-value — was structured with five years of interest-only payments. The second transaction, in the amount of $23 million, refinanced a 69-unit property in Los Angeles. This loan was leveraged at 65 percent and structured with a five-year fixed-rate of interest.
“Financing for apartment assets remains widely available, with capital providers that include agency lenders; an extensive array of local, regional and national banks; and insurance companies,” said Sharone Sabar, senior managing director, capital markets, in Marcus & Millichap Capital Corp.’s Encino, Calif., office. “In many cases, lenders remain cautious and have adopted tighter underwriting standards. However, lenders also continue to aggressively compete to place capital in the multifamily sector, which is a favored asset class.”