IPA Capital Markets Arranges $123 Million Refinance for Luxury Multifamily Community in Burlingame
IPA Capital Markets, the capital markets division of Marcus & Millichap, has successfully arranged $123 million in debt financing for a luxury multifamily property located in Burlingame, California. The financing package supports a 268-unit apartment community situated in one of the San Francisco Bay Area’s most desirable residential markets and demonstrates continued lender confidence in high-quality multifamily assets despite ongoing challenges in the commercial real estate financing environment.
The transaction was structured on behalf of a nationally recognized multifamily owner, operator, and investment firm seeking to refinance the property while maintaining financial flexibility and preserving equity. By securing favorable loan terms and incorporating preferred equity into the capital stack, IPA Capital Markets was able to deliver a cash-neutral refinancing solution tailored to the client’s long-term investment strategy.
Strategic Financing in a Competitive Market
The financing was arranged by a Los Angeles-based IPA Capital Markets team consisting of Brian Eisendrath, Cameron Chalfant, Anita Paryani-Rice, and Jesse Zarouk. The team leveraged its extensive relationships across the lending community to evaluate multiple financing options and identify the most efficient structure for the borrower.
In today’s commercial real estate environment, refinancing large multifamily assets can be particularly challenging. Higher interest rates, stricter underwriting standards, and increased lender scrutiny have created a more complex financing landscape than in previous years.
To address these challenges, IPA Capital Markets conducted a comprehensive review of available capital sources, including debt funds, traditional banks, insurance companies, and other balance-sheet lenders. The objective was to secure a financing package that minimized capital costs while supporting the owner’s operational and investment goals.
The result was a carefully structured solution that combined senior debt financing with preferred equity, creating a balanced capital stack that met the client’s refinancing objectives without requiring additional cash contributions.
Loan Terms Designed for Long-Term Stability
The refinancing package includes a five-year loan with favorable financial terms that provide stability and flexibility for the property owner.
The financing features an interest rate of 5.09%, which remains attractive in the current lending environment. The loan was structured with a debt service coverage ratio (DSCR) of 1.10x, reflecting the property’s strong income-generating capabilities while maintaining lender confidence in the asset’s performance.
An additional benefit of the financing package is the inclusion of interest-only payments throughout the loan term. This structure helps maximize cash flow by reducing debt service obligations during the five-year period, allowing ownership to retain greater operational flexibility and allocate capital toward future opportunities.
The combination of competitive pricing and favorable loan terms underscores the property’s quality and the strength of the borrower’s track record in managing multifamily investments.
Preferred Equity Enhances Capital Structure
A significant component of the transaction was the addition of $26 million in preferred equity provided by Tokyu Land US Corporation.
Preferred equity has become an increasingly popular financing tool in commercial real estate, particularly in situations where owners seek to optimize leverage while avoiding dilution of ownership interests.
By incorporating preferred equity into the transaction, the financing team was able to create a cash-neutral refinancing structure that aligned with the borrower’s objectives. The preferred equity component carried a relatively low current payment requirement, making it an efficient and cost-effective addition to the overall capital stack.
According to Anita Paryani-Rice of IPA Capital Markets, the financing strategy was specifically designed to meet the needs of a long-term client while balancing cost considerations and market realities.
The final structure successfully combined life insurance company financing with attractively priced preferred equity, resulting in a solution that provided both immediate benefits and long-term financial flexibility.
Prime Location in the Bay Area
The financed property is located in Burlingame, one of the most sought-after residential communities in the San Francisco Peninsula region.
Known for its strong employment base, excellent transportation access, and high quality of life, Burlingame has long attracted residents seeking proximity to major business centers while enjoying a suburban lifestyle.
The apartment community benefits from a particularly advantageous location, situated less than four miles from San Francisco International Airport. This proximity offers convenient access for business travelers and professionals working throughout the Bay Area.
The property’s location also provides connectivity to major employment hubs across Silicon Valley, downtown San Francisco, and the broader Peninsula corridor. These factors continue to support strong demand for high-quality rental housing in the region.
Luxury Apartment Features
The 268-unit multifamily community offers a mix of one-, two-, and three-bedroom apartment homes designed to appeal to a diverse range of residents.
Each residence includes modern finishes and amenities that align with current renter preferences. Features include in-unit laundry facilities, stainless steel appliances, spacious floor plans, and private patios or balconies that provide additional outdoor living space.
These features help position the property competitively within the Bay Area’s luxury apartment market, where renters increasingly prioritize convenience, comfort, and lifestyle-oriented amenities.
The property’s design reflects broader trends in multifamily housing, where developers and owners continue to focus on creating high-quality living environments that support both work and leisure activities.
Resort-Style Community Amenities
In addition to well-appointed residences, the community offers an extensive selection of shared amenities designed to enhance the resident experience.
Outdoor spaces include two landscaped courtyards featuring barbecue grills, seating areas, and hammocks that encourage relaxation and social interaction. These amenities create a resort-like atmosphere while fostering a sense of community among residents.
Fitness-focused amenities include a fully equipped fitness center, allowing residents to maintain active lifestyles without leaving the property.
The community also features a clubhouse and a resort-style swimming pool, providing spaces for recreation, entertainment, and social gatherings.
Recognizing evolving work patterns, the property includes a dedicated coworking lounge designed to accommodate remote and hybrid work arrangements. This feature has become increasingly important as more professionals seek flexible work environments close to home.
Pet owners also benefit from a dedicated pet spa, reflecting the growing importance of pet-friendly amenities in multifamily housing communities.
Continued Strength in the Multifamily Sector
The successful refinancing demonstrates the ongoing appeal of well-located multifamily assets in supply-constrained markets such as the San Francisco Bay Area.
Despite broader economic uncertainties and fluctuations in capital markets, institutional investors and lenders continue to view high-quality multifamily properties as attractive long-term investments. Strong rental demand, limited housing supply, and favorable demographic trends continue to support the sector.
For IPA Capital Markets, the transaction highlights the firm’s ability to navigate complex financing environments and deliver customized capital solutions for institutional and private real estate owners.
As multifamily owners continue to adapt to changing market conditions, creative financing structures like the one arranged for this Burlingame property are expected to play an increasingly important role in supporting investment activity and long-term portfolio growth.
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