Marcus & Millichap Capital Corp. (MMCC), a leading provider of commercial real estate financing and capital markets expertise, has arranged a bridge loan for the recapitalization and purchase of a 475-bed, 190,472-square-foot student housing asset located one block from Oklahoma State University in Stillwater, Oklahoma.
“The minority equity partner in this project needed a mortgage banker with significant experience underwriting equity recapitalizations and expertise in discounted note payoff structuring to recapitalize this asset and secure proceeds to purchase it,” said Todd McNeill, senior managing director capital markets in MMCC’s Dallas office. “We accepted the assignment and met the client’s request for 100% non-recourse financing without injecting any additional capital into the project.” McNeill and Jacob Rich, associate director, arranged the financing. The 36-month, non-recourse, interest-only loan was structured with an adjustable interest rate and 80% “as is” loan-to-value and 70% “as stabilized” loan-to-value.
“Challenging under normal circumstances, financing was further impacted by the property’s 0% occupancy for the school year due to construction delays, issues relating to COVID-19, including whether the university was going to open or not, the softening of the student housing market in Stillwater and the complete absence of agency lenders, who have, for the time being, suspended lending on student housing properties,” added McNeill.
About Marcus & Millichap Capital Corporation
Marcus & Millichap Capital Corporation (MMCC) is a subsidiary of Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada. Through its network of national, regional and local lenders, MMCC provides capital markets products for a wide variety of investment properties, including apartments, shopping centers, office buildings, industrial facilities, single-tenant net-lease properties, seniors housing, hotels/motels, manufactured home communities and self-storage facilities. In 2019, MMCC closed over 1,900 commercial real estate financing transactions totaling $7.1 billion. To learn more, please visit: www.mmCapCorp.com.
