Marcus & Millichap Secures $116.5M Construction Loan for Pacific Northwest Industrial Project
Event summary
- Marcus & Millichap's IPA Capital Markets arranged $116.5M in construction financing for a 1.4M sq ft industrial property in the Pacific Northwest.
- The loan secured 95% loan-to-cost financing at a 5-year fixed rate of 5.28%.
- The deal was led by Gary Mozer and Lee Norman from the firm's Los Angeles office.
- The loan includes yield maintenance prepayment terms with the final six months open with no prepayment penalty.
The big picture
This financing deal underscores the continued appetite for industrial real estate development, particularly in high-demand regions like the Pacific Northwest. The ability to secure high loan-to-cost ratios at relatively low fixed rates suggests favorable borrowing conditions for well-credit-tenanted properties. Marcus & Millichap's role in facilitating such large-scale transactions highlights its position as a key player in the commercial real estate capital markets.
What we're watching
- Debt Market Conditions
- How sustained access to high loan-to-cost financing will affect future industrial development projects.
- Prepayment Terms
- Whether the yield maintenance prepayment terms will influence similar deals in the near term.
- Industrial Demand
- The pace at which industrial property development accelerates in the Pacific Northwest.
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