Marcus & Millichap Capital Corp. has arranged a $13.5 million refinancing loan for an office building and two multi-tenant retail properties.
Dean Giannakopoulos, an associate director in the originations department of the firm’s Chicago downtown office, arranged the loan.
“The borrower sought to leverage the market’s current low interest rates and accelerate the loan’s amortization schedules in order to pay them down faster,” Giannakopoulos said. “With the quality of this portfolio, MMCC’s negotiating power and the borrower’s excellent record, we located a regional lender willing to provide competitive terms and achieve the client’s goals.
“The appraised value of the properties did not come in as high as we anticipated,” Giannakopoulos added, “but the lender demonstrated commitment to the deal by increasing the leverage. The borrower will now be able to accelerate the reduction of debt — and at a lower rate than before.”
The office property is located in Chicago’s River North neighborhood, a hub to retail, hotels, restaurants and other offices. It is 100 percent occupied by local tenants.
The two retail assets are located in Mt. Prospect and Woodstock. The property in Mt. Prospect is occupied solely by local tenants; Woodstock Center is anchored by a national grocery store and features a mix of local and national tenants.
The seven-year loan amortizes at a different schedule for each property, from 15 to 20 years, with an interest rate in the low four percent range. The loan-to-value is 75 percent.
