Marcus & Millichap’s IPA Capital Markets Division Arranges $72 Million Refinancing for Mixed-Use Development in Omaha MSA

Rhea-AI Summary

IPA Capital Markets, a division of Marcus & Millichap (NYSE:MMI), has arranged a $72.24 million refinancing for La Vista City Centre, a mixed-use development in La Vista, Nebraska. The seven-year loan secured by Frank Montalto, managing director, features full-term interest-only at cost of funds plus 1.75% and a loan-to-value of 70%. The development includes 392 luxury apartments, 32,878 square feet of retail space, and 64,883 square feet of office space. The refinancing deal was closed in under 50 days, meeting impending deadlines.

Positive

• Arranged $72.24 million refinancing deal.
• Loan secured in under 50 days, demonstrating efficiency.
• Seven-year loan features full-term interest-only at cost of funds plus 1.75%.
• Loan-to-value ratio of 70%.
• Refinancing supports a growing, master-planned mixed-use development.

Negative

• No immediate mention of revenue increase for Marcus & Millichap.
• Potential financial risk due to full-term interest-only loan structure.
• Economic uncertainties may impact development's future success.

Insights

Financial Analyst

The refinancing of La Vista City Centre in Omaha, MSA, for $72.24 million secured by Marcus & Millichap’s IPA Capital Markets division presents a notable transaction in the commercial real estate sector. The seven-year loan with full-term interest-only at the cost of funds plus 1.75% and a loan-to-value ratio of 70% indicates a favorable borrowing environment despite current lending challenges. From a financial standpoint, this deal reflects strong confidence in the La Vista City Centre project and Marcus & Millichap’s ability to navigate complex financing structures. For investors, it signals the company’s continued proficiency in securing substantial financing deals, which can be seen as a positive indicator for its overall financial health and potential for future growth.

Real Estate Market Analyst

The refinancing underscores the attractiveness and potential of mixed-use developments like La Vista City Centre. Featuring 392 luxury apartments, nearly 33,000 square feet of retail space and almost 65,000 square feet of office space, the development offers a diversified real estate portfolio. The inclusion of amenities such as The Astro music venue and a 34-acre park enhances its appeal, potentially driving higher occupancy rates and rental incomes. This strategic mix can be highly appealing to investors looking for stable and diversified income streams. The successful refinancing also suggests confidence in the region’s economic stability and growth prospects, making La Vista a noteworthy location in the Midwest real estate market.

LA VISTA, Neb.--(BUSINESS WIRE)-- IPA Capital Markets, a division of Marcus & Millichap (NYSE:MMI), specializing in capital markets services for major private and institutional clients, announced the $72.24 million refinance of La Vista City Centre, a growing master-planned multifamily, office and retail development in La Vista, Nebraska.

Frank Montalto, IPA Capital Markets managing director based in the firm’s Chicago office, secured the financing on behalf of City+Ventures, a Nebraska-based investment and development company that partnered with the City of La Vista beginning in 2015 for the development of the community.

“Today’s lending environment requires enhanced negotiations to obtain the most competitive pricing while crafting a creative structure adhering to our client’s investment thesis,” said Montalto. “Our team was successful in leveraging our relationships to get this deal closed in under 50 days to meet impending deadlines. We are very excited to get this over the finish line with our client.”

Terms of the seven-year loan include full-term interest-only at cost of funds plus 1.75% and a loan-to-value of 70%.

La Vista City Centre features the Vivere Apartments complex consisting of 392 luxury units ranging from studios to two bedrooms, 32,878 square feet of retail space, and 64,883 square feet of office space. Located adjacent to the Vivere Apartments is The Astro, an indoor and outdoor music venue, and a 34-acre park.

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, Inc. (NYSE: MMI)

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. As of December 31, 2023, the company had 1,783 investment sales and financing professionals in over 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 7,546 transactions in 2023, with a sales volume of approximately $43.6 billion. For additional information, please visit www.MarcusMillichap.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240606951680/en/

Gina Relva, VP of Public Relations

Gina.Relva@MarcusMillichap.com

Source: Marcus & Millichap, Inc.

FAQ

What is Marcus & Millichap's stock symbol?

The stock symbol for Marcus & Millichap is MMI.

How much refinancing did Marcus & Millichap's IPA Capital Markets Division arrange for La Vista City Centre?

IPA Capital Markets arranged a $72.24 million refinancing for La Vista City Centre.

What are the terms of the seven-year loan secured by Marcus & Millichap for La Vista City Centre?

The loan features full-term interest-only at cost of funds plus 1.75% and a loan-to-value ratio of 70%.

What is included in the La Vista City Centre development?

The development includes 392 luxury apartments, 32,878 square feet of retail space, and 64,883 square feet of office space.

How quickly was the refinancing deal for La Vista City Centre closed?

The refinancing deal was closed in under 50 days.