Marcus & Millichap’s IPA Capital Markets Arranges $21.63 Million in Bridge Financing for Iconic Los Angeles Building

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LOS ANGELES--(BUSINESS WIRE)-- Marcus & Millichap (NYSE:MMI) today announced its Institutional Property Advisors Capital Markets (IPA Capital Markets) has arranged $21.63 million in bridge financing for the San Fernando Building, one of downtown Los Angeles’ most iconic buildings.

“The San Fernando Building is now part of our client’s Heritage Collection, a portfolio of Los Angeles’ historically significant properties,” says Jake Roberts, first vice president capital markets, IPA. “The purchaser, a long-time client, hired IPA Capital Markets to provide the best loan structure for the repositioning of this distinctive asset, which requires significant renovation capital and a clear vision for the potential of this asset and area of downtown.”

Roberts and Anita Paryani Rice, IPA vice president capital markets, arranged the loan.

“The location is outstanding but still stabilizing, so we had to clearly articulate the borrower’s vision to a forward-looking lender who was comfortable with the building’s historic tax abatements and restrictions,” adds Paryani. “IPA’s deep knowledge of the bridge/value-add financing universe was exactly what our client required.”

The three-year, interest-only debt was arranged at Libor-plus 4.25 percent on a nonrecourse basis.

Located in the recently revitalized portion of Main Street and Spring Street in downtown Los Angeles, the Italian Renaissance Revival-style San Fernando Building was built in 1906 as an office building, renovated in 1911 and converted to lofts in 2002. The nine-story building has 70 residential units and features 22-foot ceilings, original tile floors, elaborate cornice work and sculptured exterior panels. Fourteen offices and the retail space will be converted to live/work use.

About Marcus & Millichap (NYSE:MMI)

With over 1,600 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed over 8,700 transactions in 2015 with a value of approximately $37.8 billion. The company has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com

About Institutional Property Advisors Capital Markets (IPA Capital Markets)

IPA Capital Markets provides the industry's most comprehensive institutional capital markets advisory platform. Our expertise and services cover the entire capital stack and all asset classes and investment objectives. Our team is supported by Marcus & Millichap Capital Corp.’s (MMCC) 35 offices and nearly 100 capital markets professionals. The MMCC team closed 1,600 financing transactions in 2015, making it one of the largest financial intermediaries in the United States. www.IPAusa.com

Marcus & Millichap
Gina Relva, 925-953-1716
Public Relations Manager

Source: Marcus & Millichap

Released June 24, 2016