BEVERLY HILLS, CA – Marcus & Millichap Capital Corporation (MMCC), a leading provider of commercial real estate financing and capital markets expertise, has arranged a $38 million refinance for two medical office properties in Beverly Hills, Calif.
Anita Paryani Rice and Jake Roberts, both vice presidents capital markets in the firm’s West Los Angeles office, arranged the loan.
“The client was interested in placing long-term fixed-rate debt on these assets,” says Paryani Rice. “With the knowledge that they will own the properties for many years, they also chose to take cash out for future investments.”
“Due to our client’s long-standing relationship with their tenants, monthly rental rates were nearly $2 per square foot less than market rate. Taking cash out made it difficult to procure the best interest rates on the refinance,” adds Roberts. “MMCC was able to illustrate the delta between actual and market rents so the lender understood that the assets’ had strong upside potential for the foreseeable future which allowed us to secure a phenomenal rate under 4% for 20-years fixed.”
The 20-year fixed term loan carried a rate of 3.85 percent with a loan-to-value of less than 60 percent.