BrokerageMultifamily

Marcus & Millichap Capital Corp. Closes $33.1M in CRE Financing

DENVER – Marcus & Millichap Capital Corp. (MMCC), a leading national provider of commercial real estate financing and capital markets expertise, recently announced that more than $33.1 million in investment property financing was placed by its Denver office led by Phillip Gause, first vice president capital markets, and Alex Ducas, associate director, through April 30, 2019.

Senior permanent acquisition financing accounted for nearly 80 percent of the team’s total transaction volume. The remaining 20 percent comprised bridge financing and permanent refinancing.

The team closed a $5.62 million bridge loan for the acquisition of a 52-unit multifamily portfolio, composed of two buildings in the uptown neighborhood of Denver. The loan funded in two weeks from application in order to close within the terms of the purchase-and-sale agreement.

“One of our proprietary capital partners was really impressive in their ability to step into a situation where the lender our client had previously selected could not get their arms around the transaction and substantially re-traded our client only a week and a half before closing.  Given that our client had a substantial amount of non-refundable earnest money at risk if they were not able to consummate the transaction, this presented a significant issue. Our capital partner stepped in and positioned us to close inside of two weeks from application at attractive terms and on a non-recourse basis,” Gause said.

MMCC’s platform leverages its broad lender network in order to source the most competitive financing available for investors seeking to acquire investment properties around the country.

Select multifamily Colorado transactions include:

Fillmore Crossing, Colorado Springs

Acquisition financing in the amount of $8.5 million was placed with an institutional lender for Fillmore Crossing, a 189-unit apartment complex in Colorado Springs, at an interest rate of 4.73 percent. The 10-year non-recourse loan featured a 30-year amortization schedule with interest-only payable for the first 12 months. The loan was structured with an initial advance of 75 percent of purchase price with a future funding reserve — allocated to finance costs associated with in-unit and common-area capital improvements.

Courtyard on Vine and William Penn Apartments

A bridge loan in the amount of $5.62 million was secured by both properties at 70 percent of purchase price with interest-only payments. The non-recourse loan closed in two weeks from application with a balance-sheet lender.

Multifamily Portfolio in Aurora

Acquisition financing in the amount of $3.6 million was placed for a three-property, 36-unit multifamily portfolio — located in Aurora — at 70 percent of purchase price. The loan amortizes over a 30-year schedule with a fixed interest rate for five years. The financing closed with a regional credit union and is freely pre-payable during the loan term.

Autumn Lane Apartments, Colorado Springs

Acquisition financing in the amount of $2.83 million was placed for Autumn Lane Apartments, a 38-unit multifamily property in Colorado Springs. The loan closed with a 4.76 percent interest rate, fixed for seven years. It featured a 20-year term with a 30-year amortization schedule and one-year of interest-only payments. Freddie Mac financed the non-recourse loan under the Small Balance Lending program at 80 percent of purchase price.

Photo courtesy of Marcus & Millichap

 

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