BERKELEY, CA—Marcus & Millichap Capital Corp. has arranged $6.5 million in debt as a refinance on a 47,000-sq.-ft. class-B office property in Berkeley’s central business district.
Jeffery Shaddy, a director in MMCC’s Sacramento office, arranged the loan.
“There were several challenges facing this transaction,” Shaddy said in a statment. “Despite the short-term, predominately single-tenant lease, the request was for longer-term, low-rate financing without tenant improvement and leasing commission or lease-up reserves and a 30-year amortization schedule, instead of the more conservative standard of 25 years for commercial properties. And, due to proximity to a seismic fault zone, the request was for nonrecourse financing without an earthquake insurance requirement,” adds Shaddy.
The 10-year loan amortizes over 30 years at 4.5 percent. The LTV is 65 percent.
The property was built in 1969.