$123 Million Financing Arranged by Marcus & Millichap’s IPA Capital Markets for Bay Area Multifamily Property
$123 Million Financing Arranged by Marcus & Millichap’s IPA Capital Markets for Bay Area Multifamily Property
Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Neutral)
Tags
Key Terms
dscrfinancial
Debt-service coverage ratio (DSCR) measures how easily a company can pay its debt obligations by comparing the cash it has available for debt payments to the amount it must pay in a given period. Think of it as a household budget ratio: if your monthly take-home pay comfortably exceeds your loan and mortgage payments, you have a high DSCR; a low DSCR signals a greater risk that the company may struggle to meet interest and principal payments, which matters to lenders and investors assessing credit safety and bankruptcy risk.
preferred equityfinancial
Preferred equity is a type of investment that sits between common stock and debt in a company's financial structure. It typically offers investors priority in receiving dividends and getting their money back if the company runs into trouble, making it somewhat safer than regular shares. Investors value preferred equity because it provides a steady income stream while still allowing some participation in the company's success.
mezzanine financingfinancial
Mezzanine financing is a hybrid form of capital that sits between a company’s senior loan and its ownership, typically structured as a subordinated loan or convertible instrument that pays higher interest and may include rights to convert into equity. Think of it like a second mortgage or a booster seat: it carries more risk than the main loan but is less permanent than selling shares. It matters to investors because it can boost returns for lenders, increase a company’s debt burden, and potentially dilute equity if converted, influencing risk and reward.
joint venture equityfinancial
Joint venture equity is the ownership stake a company or investor holds in a business formed and run together with one or more partners. Think of several neighbors pooling money to buy and manage a rental property: each owner’s share determines their share of profits, losses, decision-making influence and liability. For investors, joint venture equity matters because it affects future cash flow, balance-sheet exposure and how much control and risk come from a shared enterprise.
sponsor equityfinancial
Sponsor equity is the ownership stake that a sponsoring party puts into a business deal or investment, often as the sponsor’s own cash or shares. Think of it as the sponsor’s down payment and shows how much skin they have in the game; higher sponsor equity signals stronger alignment with other investors and greater willingness to take risk, which can affect potential returns, dilution and how decisions are made.
See more from StockTitan in Google Search and AI answers.Adds StockTitan as a preferred source · opens Google
BURLINGAME, Calif.--(BUSINESS WIRE)--
IPA Capital Markets, a division of Marcus & Millichap (NYSE:MMI) specializing in capital markets services for major private and institutional clients,has secured $123 million in debt financing for a 268-unit luxury multifamily property in Burlingame, California.
Brian Eisendrath, Cameron Chalfant, Anita Paryani-Rice, and Jesse Zarouk of IPA Capital Markets in Los Angeles secured a five-year loan on behalf of a national multifamily owner, operator and investment firm. The loan featured an interest rate of 5.09%, a DSCR of 1.10x, and interest-only payments for the term. The financing structure also included $26 million in preferred equity from Tokyu Land US Corporation.
“Our IPA Capital Markets team was pleased to provide a cash-neutral refinance that met therefinancing goals of a long-term client," said Paryani-Rice. “We evaluated options across debt funds, banks, and a range of other balance sheet lenders. Ultimately, the most cost-effective structure paired a life company execution with an attractively priced preferred equity piece carrying a low current pay.”
Located less than four miles from San Francisco International Airport, the property features a mix of one- to three-bedroom apartment homes with in-unit laundry, stainless steel appliances, and private patios or balconies. Community amenities include two courtyards with barbecue grills and hammocks, a fitness center, clubhouse, resort-style swimming pool, pet spa, and a coworking lounge.
About IPA Capital Markets
IPA Capital Markets is a division of Marcus & Millichap (NYSE: MMI). IPA Capital Markets provides major private and institutional clients with commercial real estate capital markets financing solutions, including debt, mezzanine financing, preferred and joint venture equity, and sponsor equity. For more information, please visit institutionalpropertyadvisors.com/capital-markets
About Marcus & Millichap
Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. Marcus & Millichap closed 8,818 transactions with a sales volume of $50.8 billion in 2025. The company had 1,808 investment sales and financing professionals in more than 80 offices at year end.
