Marcus & Millichap Secures $123M Refinancing for Bay Area Luxury Multifamily Property

Event summary

  • Marcus & Millichap's IPA Capital Markets arranged $123M in debt financing for a 268-unit luxury multifamily property in Burlingame, California.
  • The five-year loan features a 5.09% interest rate, 1.10x DSCR, and interest-only payments, with $26M in preferred equity from Tokyu Land US Corporation.
  • The property is located less than four miles from San Francisco International Airport and includes high-end amenities such as a fitness center, clubhouse, and coworking lounge.
  • The deal was secured by Brian Eisendrath, Cameron Chalfant, Anita Paryani-Rice, and Jesse Zarouk of IPA Capital Markets in Los Angeles.

The big picture

This $123M refinancing deal underscores the continued appetite for luxury multifamily properties in high-demand urban areas like Burlingame. The strategic use of preferred equity alongside traditional debt financing highlights the evolving capital structures in commercial real estate. Marcus & Millichap's ability to secure favorable terms for its client reflects the firm's strong positioning in the capital markets space, particularly in the multifamily sector.

What we're watching

Debt Market Trends
How the 5.09% interest rate and 1.10x DSCR structure will influence future refinancing deals in the multifamily sector.
Preferred Equity Demand
Whether the inclusion of $26M in preferred equity from Tokyu Land US Corporation signals a growing trend in multifamily property financing.
Bay Area Market Dynamics
The pace at which similar luxury multifamily properties in the Bay Area will seek refinancing amid current market conditions.