DALLAS, TX – Institutional Property Advisors Capital Markets (IPACM), a leading provider of debt and equity placements and advisory solutions for major investors, has arranged $18.3 million in debt financing for two properties located in San Antonio and Bedford, Texas. IPACM is a division of Marcus & Millichap.
Brian Adams, an associate director in the firm’s Dallas office, arranged $6.8 million for the San Antonio property and $11.5 million for the property in Bedford.
IPA executive director Will Balthrope and IPA director Scott Lamontagne referred the borrower of the 120-unit asset in San Antonio to Adams.
“The borrower required competitive acquisition financing to purchase the property,” says Adams. “However, as a result of the market-wide increase in permanent interest rates during the transaction, the loan proceeds were debt-service constrained.”
“We shifted the deal from a 10-year term to a seven-year term in order to preserve the transaction,” adds Adams. “We provided a permanent nonrecourse debt structure through an agency lender and met the borrower’s long-term financing objectives.”
The seven-year fixed loan amortizes over 30 years.
Will Balthrope, IPA associate director Drew Kile, Marcus & Millichap vice president investments Nick Fluellen, and associate Bard Hoover referred the borrower of the 220-unit complex in Bedford to Adams.
“IPA Capital Markets was introduced early in the sales process by the selling agents to ground available financing options for the property,” continues Adams. “The ability to obtain the long-term, fixed-rate, nonrecourse debt structure was a key factor to the client in supporting the offer needed to acquire the property.”
“Even though the borrower was an experienced owner/operator, they were a first-time agency borrower acquiring their first property in the Dallas/Fort Worth market,” concludes Adams. “We were able to highlight their overall experience in combination with local third-party management, which gave the lender confidence in offering a full leverage structure.”
The 10-year fixed loan amortizes over 30 years after one year interest only.