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MMCC Arranges Acquisition Loan for San Diego Morton’s
Marcus & Millichap Capital Corporation (MMCC) arranged $4,380,000 in financing for the acquisition of a single-tenant restaurant property, tenanted by Morton’s The Steakhouse, located at 285 J St. at the edge of the Gaslamp Quarter in San Diego.
Chad O’Connor, executive managing director in MMCC’s San Diego office, secured the financing with a national credit union on behalf of a private client. Terms of the six-year loan include a 6.09% interest rate with a 30-year amortization period and 65% loan-to-value.
“This is a strong location for Morton’s, but a significant portion of the rent is tied to percentage of sales, which most lenders typically exclude from underwriting,” said O’Connor. “However, we were able to identify a lender who recognized the long-term consistency of sales at this site and the underlying strength of the real estate, allowing them to include the full percentage rent in their underwriting.”
- ◦Sale/Acquisition
- ◦Financing
