Lipsey and Chavkin of MMCC refinance $4.25 million for 14,917 s/f center

Marcus & Millichap Capital Corp. (MMCC) has arranged $4.25 million in refinancing for a 14,917 s/f shopping center. Joshua Lipsey and Michael Chavkin, commercial loan associates in the firm's New Jersey office, arranged the loan. "The refinance was a take-out of a first mortgage and construction loan," said Lipsey. "The existing lender did not honor the initial loan terms regarding the rollover permanent financing and also tied up $500,000 in a non-interest bearing account. The borrower wanted long-term permanent financing so the 20-year, self-liquidating loan fit perfectly into this investment strategy." The loan is fixed for 20 years at an interest rate of 6.1%. The LTV is 70%. "The demand for long-term money from our clients is very common," Lipsey said. "However, most portfolio lenders are not willing to extend past seven years. For this loan, we leveraged MMCC's relationship with the lender to provide the client with exceptional terms including long-term money, burn-off recourse and a higher-than-market LTV."