Marcus & Millichap's IPA Capital Markets Arranges $44 Million Financing for Luxury Los Angeles Multifamily Properties

Marcus & Millichap's IPA Capital Markets has successfully arranged $44 million in financing for two upscale multifamily properties in Los Angeles. The financing includes $28.3 million for Moderno Axis, a 126-unit apartment complex located at 7650 Van Nuys Boulevard, and $15.7 million for Moderno La Granada Hills, a 54-unit complex located at 17454 Chatsworth Street, which also features retail space. Senior Managing Director Anita Paryani-Rice led the financing, working with a national bank on behalf of a private client.

Both properties secured five-year fixed-rate, non-recourse loans with full-term interest-only payments and a step-down prepayment structure, featuring locked interest rates at 5.40% for Moderno Axis and 5.60% for Moderno La Granada Hills. Paryani-Rice emphasized the strong demand for high-quality multifamily assets in Los Angeles, noting that the lender acknowledged the premier locations, robust performance, and extensive amenities offered by both properties, allowing for highly competitive financing terms.

Moderno Axis boasts proximity to the Van Nuys MetroLink and Amtrak Station and offers a diverse mix of unit sizes alongside amenities such as in-unit laundry, a fitness center, swimming pool, jacuzzi spa, dog park, and more. In contrast, Moderno La Granada Hills, which features a Spanish-style design, is located near California State University Northridge. Its pet-friendly units come with similar amenities including a fitness center, pool, recreation room, and integrated retail space on the ground level.

IPA Capital Markets, a division of Marcus & Millichap, specializes in providing comprehensive capital markets financing solutions to major private and institutional clients, solidifying its reputation within the commercial real estate landscape.

Marcus & Millichap's recent arrangement of $44 million financing for luxury multifamily properties in Los Angeles underscores an ongoing trend in the market: robust demand for high-quality rental assets. The financing of Moderno Axis and Moderno La Granada Hills reflects not just the resilience of the Los Angeles real estate market but also the strategic appeal of multifamily investments in urban settings.

The financing, secured from a national bank at competitive interest rates of 5.40% and 5.60%, with favorable terms such as full-term interest-only payments and step-down prepayment options, highlights lenders’ confidence in urban multifamily developments. Such terms are indicative of a healthy credit environment, which is particularly important as interest rates fluctuate.

Investors should pay close attention to this trend as it indicates that high-quality multifamily assets are being recognized for their strong performance potential. Properties located near major transit hubs, like Moderno Axis next to the Van Nuys MetroLink and Amtrak Station, are especially attractive for renters, thus presenting opportunities for long-term appreciation in property values.

The added retail space in Moderno La Granada Hills not only diversifies income streams but also makes it a community centerpiece, boosting its attractiveness to potential tenants. With amenities aligned to modern living preferences—fitness centers, pools, and pet accommodations—these properties cater to the growing demand for lifestyle-oriented apartments.

Investors looking to enter the Los Angeles market or expand their portfolios could consider targeting similar multifamily properties. Given the market's current conditions and the favorable financing landscape, investing in high-quality multifamily assets could yield significant returns while aligning with broader urban living trends.