Real Estate Journal — Financial Digest — Creative Financing — June 9 - 22, 2017 — 15A


M id A tlantic

C reative F inancing

arcus & Mi l l i c - hap Capital Corp. (MMCC), a leading Marcus & Millichap Capital Corp. Capital remains readily available for multifamily and commercial real estate assets in Philadelphia M

growth and stabilization of oil prices, both positives for the overall economy. Higher wages will encourage spend- ing while inflationary pres- sure on prices will raise overall consumption, the primary driver of economic growth. • Underwriting dis- cipline persists; ample debt capital remains. Multifamily originations increased in 2016, with agency lending dominating the overall marketplace. The

government agencies under- wrote about $105 billion in loans last year and remain a primary source of multifam- ily originations in 2017 due to their efficient execution. Acquisition debt remained plentiful throughout 2016, but borrowers’ rates rose late in the year in conjunc- tion with higher Treasury yields and loan-to-value ratios compressed. The com- bination of higher rates and tighter lender underwriting created some investor cau-

tion that could carry over into 2017. A potential easing of Dodd-Frank regulations on financial institutions could create additional lend- ing capacity for other capital sources. Marcus & Millichap Capi t al Corporat ion (MMCC) is a subsidiary of Marcus & Millichap , a leading commercial real estate investment services firmwith offices throughout the United States and Can- ada. Through its network of

national, regional and local lenders, MMCC provides capital markets products for a wide variety of investment properties, including apart- ments, shopping centers, office buildings, industrial facilities, single-tenant net- lease properties, seniors housing, hotels/motels, manufactured home com- munities and self-storage facilities. In 2015, MMCC closed more than 1,600 com- mercial real estate financing transactions. n

national provider of com- mercial real estate financ- ing and capital markets expertise has just released the following commentary for the month of June. The 10-Year U.S. Treasury is trending towards its lowest point of 2017 and the coupon is currently 2.22%. ADP and Moody’s Analytics reported private payrolls surged by 253,000 in May, easily top- ping expectations as the report was expected to show 185,000 jobs added. Big growth areas are construc- tion, professional and busi- ness services. A stronger job market provides the Federal Reserve withmore leeway to raise interest rates and its next meeting on rate policy is in two weeks. U.S. equity markets have been trading higher with the S&P 500 and NASDAQ hitting record highs and global equity mar- kets have been relatively stable. Capital remains readily available for multi- family and commercial real estate assets. • Monetary policy ac- tions set to accelerate. The 10-year U.S. Trea- sury rate held below 2 per- cent until a surge following the election raised the rate above that threshold and potentially established a new and higher range for the benchmark. Moderate economic growth and muted inflation throughout the growth cycle allowed the Federal Reserve to hold off on rate hikes, which has supported additional cap rate compression. However, the Trump administration’s fiscal plans built on higher spending and reduced taxes could accelerate economic growth. Intensifying in- flationary pressure under that scenario could encour- age the Federal Reserve to quicken the pace of its ef- forts to raise its short-term benchmark. • Inflation on the up- swing, but for the right reasons. Though inflationary pres- sures are beginning to grow, increases are occurring from a historically low base. Further, inflationary pres- sure has arisen from wage

Specialization • Expertise • Results

Providing Comprehensive Financial Solutions

Below is a Representative Selection of Our Recent Financing Transactions





Net-Leased GSA York, PA $6,640,000

Multifamily Fishtown (Philadelphia), PA $10,750,000

Net-Leased Drug Store Portfolio OH, IL, SC, NY $14,000,000

Multifamily Philadelphia, PA $4,500,000





Office Simsbury, CT $3,600,000

Owner Occupied Philadelphia, PA $7,650,000

Mixed-Use Manayunk (Philadelphia), PA $1,600,000

Multifamily Drexel Hill, PA $4,650,000

For debt and structured finance, please contact:

Scott Caliguire Analyst Philadelphia (215) 531-7027 scaliguire@marcusmillichap.com

Brenton Baskin Regional Manager Broker of Record

Matthew Rosenberg Director Philadelphia (215) 531-7033 mrosenberg1@marcusmillichap.com

Pennsylvania (215) 531-7000 bbaskin1@marcusmillichap.com

Offices Throughout the U.S. and Canada


NY and CT Broker of Record | J.D. Parker | (212) 430-5100

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