SANTA CLARITA, Calif. – Marcus & Millichap Capital Corporation (MMCC), a leading provider of commercial real estate financing and capitalexpertise, has arranged $6.1 million of debt for a 154,000-square-foot retail neighborhood asset.
Sharone Sabar, a vice president capital markets in MMCC’s Encino , arranged the loan.
“The borrower’s existing loan was maturing although as the property’s earlier use included a gas station, the bank conducted a phase one report recommending further testing to decide whether there was contamination,” says Sabar. “The borrower was concerned that further testing would delay closing, which could have triggered a default of the loan.”
“We were able to convince our lending source that there was enough equity in the property to cover remediation costs, if needed” adds Sabar. “We closed the loan in 40 days.”
The 30-year loan is fixed at 3.8 percent for five years and amortizes over 30 years, with 60 percent loan-to-value.