SEATTLE – Marcus & Millichap Capital Corp. (MMCC), a leading provider of commercial real estate financing and capital markets expertise, has arranged $5.8 million of debt financing for a fully rehabbed, 36-unit garden apartment in Seattle.
Glenn Gioseffi, a vice president capital markets in MMCC’s Seattle office, arranged the loan.
“Dan Swanson, a vice president investments in Marcus & Millichap’s Seattle office represented both the seller and buyer of this asset,” says Gioseffi. “The seller had just completed total rehab of the property and wanted to free up equity and move on to a new project.”
“The buyer, a long-term client of MMCC, was interested in purchasing the property and approached me for financing,” adds Gioseffi.
“We didn’t have specific market data to support the financing request,” continues Gioseffi. “We found a lender that felt comfortable with the pro forma numbers. We also identified an appraiser who could work in a short time frame and had enough experience with the market that he could support the underlying numbers.”
“The trend of taking old buildings and rehabbing them is not new,” concludes Gioseffi. “MMCC now has a strong source of funds for buildings with no historical numbers allowing us to perform in the rehab market with great success.”
The 30-year fixed loan amortizes over 30 years at 3.6 percent, with a 75 percent loan-to-value.