Faced With a Newly Recalcitrant Lender, Buyer and Seller Still Manage to Get a Deal Done
CONCORD, CA—Over the last six weeks lenders have become increasingly resistant to underwriting CRE deals, fearful of being left holding the bag if the transaction ultimately goes south.
Unfortunately many of these transactions don’t come to fruition, but there are the rare instances of buyers and sellers working together to push a sale across the finish line.
Here is one of those stories.
The building was listed just before the Housing Stability Tenant Protection Act passed. The contract was signed months after the bill passed and closed virtually on March 24th. Marcus & Millichap’s Matt Fotis, Lazarus Apostolidis, Zachary Golub and Paul Youssef procured the buyer and represented the seller in the property transaction.
The Lakes, a three-story, 102-unit garden-style multifamily property here, recently traded for $26.8 million despite the lender’s initial reluctance. Marcus & Millichap’s Adam Levin and Robert Johnston represented the seller, real estate investment company Brad Management, and procured the buyer, 875 Woodside LLC.