MMCC Finalizes $12.5M Refi of Mission Viejo MOB

Marcus & Millichap Capital Corporation (MMCC) arranged $12,500,000 to refinance a medical office building located in La Paz Plaza in Mission Viejo. Executive manager director Michael Derk out of MMCC’s Orange County office worked with investment sales specialist Paul Bitonti to secure the financing with a local lender with which the team has a longstanding relationship.

“To achieve the best terms possible, our dedicated team engaged with over 43 different lenders, showcasing our commitment to exhaustive market exploration and negotiation,” said Derk. “Despite the incredible strength of the sponsor’s balance sheet, this deal required a $2.5-million cash-in refinance, emphasizing the challenges and complexities involved in large-scale office transactions.”

The financing terms include a 6.52% interest rate fixed for five years with a 30-year amortization schedule that offers extended payment terms. The loan comes with no prepayment penalty.

Located at 26137 La Paz Rd., La Paz Plaza is adjacent to the San Diego Freeway, providing direct access to Greater Los Angeles. Additional plaza tenants include two retail buildings, a bank, a fast-food chain and a church.