Chavkin of Marcus & Millichap Capital Corp. arranges $4.05 million loan

Marcus & Millichap Capital Corporation (MMCC) has arranged a $4.05 million loan for the purchase of a 92-unit apartment building. Michael Chavkin, a mortgage banking specialist in the firm's New Jersey office, arranged the loan for the property. "At first, the lender wasn't comfortable with the property's ownership structure," said Chavkin. "The buyer, a private equity firm based in Manhattan, was unable to source a local lender and the ownership structure of the deal changed several times after the commitment had been approved by committee." "The borrower's requirements were for a high-leverage nonrecourse loan, fixed for 10 years," Chavkin said. "The person signing for the loan carve-outs owned a very small percentage, which presented a challenge for the bank, and a major stakeholder in the deal was an overseas intuitional investor, which presented regulatory issues." "In the end, the strong working relationship between MMCC and the lender helped us overcome the objections and we were able to get the lender comfortable with the ownership structure without having to go back to committee," said Chavkin. The loan has a LTV of 75% and a 6% interest rate, fixed for 10 years with a 30-year amortization.