PLAYA DEL REY, Calif., Oct. 16, 2017 – Institutional Property Advisors (IPA), a division of Marcus & Millichap, (NYSE: MMI) announces that it has arranged $38.75 million in refinancing for Del Rey Club Apartments, a multifamily asset in Playa Del Rey, California.
“The borrower’s existing debt was maturing and he wanted to take cash out in order to expand his portfolio and reinvest into other assets,” said Michael Derk, a senior managing director of IPA Capital Markets. “We were able to use the borrower’s strong ownership experience and forecasted rental increases to determine loan proceeds and maximize leverage.”
Derk, along with Nick Gray, an associate director of Marcus & Millichap Capital Corp., represented the owner, a repeat client of IPA Capital Markets.
“This loan speaks to a trend we’re seeing where owners are taking advantage of asset appreciation and rising rents, pulling cash out of properties and reinvesting in other assets,” adds Derk.
The loan was structured as a full 10-year term interest only rate of 3.84 percent. The loan to value is 55 percent.