$123 Million Financing Arranged by Marcus & Millichap’s IPA Capital Markets for Bay Area Multifamily Property
IPA Capital Markets, a division of Marcus & Millichap (NYSE:MMI) specializing in capital markets services for major private and institutional clients,has secured $123 million in debt financing for a 268-unit luxury multifamily property in Burlingame, California.
Brian Eisendrath, Cameron Chalfant, Anita Paryani-Rice, and Jesse Zarouk of IPA Capital Markets in Los Angeles secured a five-year loan on behalf of a national multifamily owner, operator and investment firm. The loan featured an interest rate of 5.09%, a DSCR of 1.10x, and interest-only payments for the term. The financing structure also included $26 million in preferred equity from Tokyu Land US Corporation.
“Our IPA Capital Markets team was pleased to provide a cash-neutral refinance that met therefinancing goals of a long-term client," said Paryani-Rice. “We evaluated options across debt funds, banks, and a range of other balance sheet lenders. Ultimately, the most cost-effective structure paired a life company execution with an attractively priced preferred equity piece carrying a low current pay.”
Located less than four miles from San Francisco International Airport, the property features a mix of one- to three-bedroom apartment homes with in-unit laundry, stainless steel appliances, and private patios or balconies. Community amenities include two courtyards with barbecue grills and hammocks, a fitness center, clubhouse, resort-style swimming pool, pet spa, and a coworking lounge.
