Marcus & Millichap Secures $64 Million in Construction Financing for Rancho Cucamonga Mixed-Use Development

Marcus & Millichap Capital Corporation secured $64 million in financing for a mixed-use multifamily and commercial development project in Rancho Cucamonga, California. The project will feature six residential buildings, a mixed-use building with 248 apartment units, and a retail building. Ron Balys, a senior managing director at MMCC, arranged the financing with Parkview Financial on behalf of a private developer. The transaction was successful due to careful underwriting and collaboration between the borrower team and MMCC.

Marcus & Millichap Capital Corporation (MMCC) has successfully secured $64 million in financing for a mixed-use multifamily and commercial development project in Rancho Cucamonga, California. The project, arranged by senior managing director Ron Balys on behalf of a private developer, will feature six residential buildings, a mixed-use building with 248 apartment units, and a retail building.

The financing was facilitated by Parkview Financial, with the transaction being successful due to careful underwriting and collaboration between the borrower team and MMCC. This development is part of a broader trend in California's commercial real estate market, which has seen strong demand across various sectors, including multifamily, office, industrial, retail, self-storage, and hospitality [1].

California's economy, the largest in the United States and the fifth-largest in the world, continues to drive demand for commercial properties. The state's diverse economy, driven by industries such as technology, entertainment, agriculture, and tourism, has led to a robust commercial real estate market. According to the Bureau of Labor Statistics, California's unemployment rate as of August 2021 was 7.5%, slightly higher than the national average of 5.2% [1]. The state's population growth, which has increased by 6.1% between 2010 and 2020, has further fueled demand for commercial real estate [1].

The multifamily market in California remains strong due to population growth and high demand for rental housing. Financing options for multifamily properties include traditional bank loans, government-backed loans, and private lenders. The office market, driven by the technology and entertainment industries, also presents strong financing opportunities, with options including traditional bank loans, SBA loans, and private lenders [1].

The mixed-use development in Rancho Cucamonga is a reflection of the diverse financing landscape available for commercial real estate in California. Financing options for mixed-use properties can include traditional bank loans, SBA loans, private lenders, and even life company loans for high-quality assets in major markets [1]. The successful securing of $64 million in financing by MMCC highlights the potential for significant investment in commercial real estate projects in the state.

References:
[1] https://www.commercialrealestate.loans/guides/california/
[2] https://www.nasdaq.com/articles/avalonbay-avb-q2-core-ffo-jumps-18