Marcus & Millichap Secures $89.6 Million for Two New Projects
Marcus & Millichap Capital Corporation Facilitates Major Financing
Marcus & Millichap Capital Corporation (MMCC), a respected player in the commercial real estate capital markets, has successfully arranged a remarkable $89.6 million in financing for the development of two multifamily projects known as Bennett Apartments and Harlow Apartments. These properties are soon to rise adjacent to one another, just a short distance from the buzzing city of Minneapolis.
Details of the Multifamily Projects
The Bennett Apartments, strategically positioned at 591 West 78th St., are designed to encompass 184 residential units along with an enticing 11,853 square feet of prime retail space. On the other hand, the Harlow Apartments, located at 570 Market St., is set to provide 126 units along with 3,029 square feet dedicated to retail. With an expected completion date of 2026 for both developments, future residents can look forward to modern luxury finishes combined with an array of high-end amenities.
Securing the Financing
The financing was skillfully orchestrated by Gary Sefcik from MMCC’s Manhattan office. The package includes a substantial $77.5 million in senior loan proceeds from Kayne Anderson and an additional $12.1 million in mezzanine financing provided by SteepRock Capital. These funds have been tailored for the sponsor, Roers Companies—an esteemed Minnesota-based firm with a notable reputation in the real estate sector.
Market Dynamics and Opportunities
The financing arrangement has attracted considerable attention from national lenders, a testament to the strong economic growth and rental demand within the Midwest region. Commenting on the transaction, Sefcik noted, "Our financing package generated a high level of interest, bolstered by a strong local sponsorship and the overall allure of the Chanhassen submarket. The area is enjoying robust economic growth with relatively limited housing supply, enhancing the appeal for multifamily residential developments."
About Marcus & Millichap Capital Corporation
Marcus & Millichap Capital Corporation (MMCC) operates as a pivotal subsidiary of Marcus & Millichap (NYSE:MMI), an eminent firm specializing in capital markets financing solutions for commercial real estate. MMCC's extensive offerings range from debt and mezzanine financing to preferred equity and joint venture equity, alongside consultancy services that encompass due diligence and loan sales. In 2023 alone, MMCC successfully concluded 1,076 transactions, totaling an impressive $6.73 billion in value.
About Marcus & Millichap, Inc.
Marcus & Millichap, Inc., recognized as a leading national brokerage firm in commercial real estate, handles a wide array of investment services including sales, financing, and advisory capabilities. As of the end of 2023, the firm boasted a workforce comprising 1,783 professionals across more than 80 offices, facilitating investment transactions for commercial properties. The firm's notable achievements in 2023 include closing 7,546 transactions, which resulted in a substantial sales volume amounting to approximately $43.6 billion.
Frequently Asked Questions
What projects did Marcus & Millichap secure financing for?
Marcus & Millichap secured financing for Bennett Apartments and Harlow Apartments, both located near Minneapolis.
What is the total amount of financing arranged?
MMCC arranged a total of $89.6 million in financing for these multifamily projects.
Who provided the financing?
The financing consisted of $77.5 million from Kayne Anderson and $12.1 million from SteepRock Capital.
When are the projects expected to be completed?
The Bennett and Harlow Apartments are expected to be completed in 2026.
What amenities will be offered at the new apartments?
The apartments will feature luxury finishes and amenities, aimed at enhancing the living experience for future residents.
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