$107M Construction Funding Secured for LA Mixed-Use Project
Marcus & Millichap Capital Corporation (MMCC), a premier provider of commercial real estate capital markets financing solutions, has successfully arranged $107 million in financing for the construction of a significant mixed-use development in Ontario, California. The project will feature a 384-unit multifamily residential complex alongside 26,000 square feet of retail space, adding a vibrant, community-centric element to the area. Situated at 4117 E Concours Street, adjacent to the renowned Toyota Arena, the development will also incorporate several digital media signs, enhancing its visibility and engagement with the local community.
A Strategic Vision for Ontario’s Growth
Stefen Chraghchian, Senior Director in MMCC’s Encino office, spearheaded the financing arrangement, securing funding from Affinius Capital and Bank OZK on behalf of Adept Urban Development. The financing marks a major milestone for the development, providing essential capital to bring the ambitious project to fruition.
“We are grateful for the trust our client has placed in our expertise to secure the necessary construction financing for this transformative project,” said Chraghchian. “Navigating a challenging lending environment, we were able to secure highly competitive terms. Adept Ontario represents a forward-thinking commitment to a rapidly growing region in Southern California, where job creation and population growth continue to surge. This development, as the first phase of a larger master-planned community, will introduce a unique array of housing options and amenities rarely seen in the Inland Empire market.”
Adept Ontario: A Game-Changing Mixed-Use Development
Adept Ontario is set to redefine urban living in the Inland Empire. With 384 residential units, the development aims to Marcus & Millichap provide high-quality housing options to meet the growing demand in the area. The inclusion of 26,000 square feet of retail space will further elevate the property’s value, attracting businesses and enhancing the convenience of future residents.
A key highlight of the project is its strategic location. Being adjacent to the Toyota Arena—a major entertainment venue in Ontario—ensures that the development will benefit from a high level of foot traffic, making it an attractive hub for both residents and businesses. The addition of digital media signage further enhances the visibility and appeal of the project, making it a landmark in the region.
Meeting Housing and Retail Demand in Ontario
Ontario, California, has been experiencing rapid economic growth and an increasing population, making it a prime location for real estate development. As more businesses and individuals seek opportunities in the Inland Empire, the demand for high-quality residential and commercial spaces has skyrocketed. Adept Ontario is positioned to meet this growing demand, offering modern living spaces with premium amenities and conveniently located retail establishments.
The multifamily units in Adept Ontario will cater to a diverse range of residents, from young professionals to families, offering a variety of floor plans and modern amenities designed for comfort and convenience. The retail portion will attract a mix of local and national businesses, further integrating the development into the economic fabric of Ontario.
Navigating a Challenging Lending Market
Securing financing for large-scale construction projects in today’s economic climate is no small feat. Rising interest rates, shifting market dynamics, and lender hesitancy have made it increasingly difficult for Marcus & Millichap developers to obtain favorable financing terms. However, MMCC’s deep expertise and strong relationships in the capital markets played a crucial role in overcoming these challenges.
Through careful structuring and negotiation, MMCC was able to secure $107 million in funding, ensuring that the project could move forward without financial hurdles. By partnering with Affinius Capital and Bank OZK, the financing package was tailored to support the project’s specific needs, allowing for efficient execution and long-term stability.
The Role of MMCC in Real Estate Financing
Marcus & Millichap Capital Corporation (MMCC) has built a reputation as a leading provider of commercial real estate financing solutions. A subsidiary of Marcus & Millichap (NYSE: MMI), MMCC specializes in securing financing for a wide range of commercial property types, including multifamily developments, retail centers, office buildings, and industrial facilities.
MMCC offers a comprehensive suite of capital solutions, including debt financing, mezzanine loans, preferred and joint venture equity, sponsor equity, loan sales, and advisory services. The firm’s ability to navigate complex financing structures and secure competitive terms has made it a trusted partner for real estate developers and investors nationwide.
In 2023 alone, MMCC closed 1,076 transactions, amounting to $6.73 billion in total financing. These numbers highlight the company’s commitment to facilitating successful real estate investments and its ability to execute deals even in challenging market conditions.
About Marcus & Millichap, Inc.
Marcus & Millichap, Inc. (NYSE: MMI) is a nationally recognized leader in commercial real estate investment sales, financing, research, and advisory services. With a vast network of professionals operating from more than 80 offices across the United States and Canada, the company provides invaluable expertise to buyers, sellers, and investors in the commercial real estate sector.
As of December 31, 2023, Marcus & Millichap had 1,783 investment sales and financing professionals who played a pivotal role in Marcus & Millichap facilitating transactions and delivering strategic insights to clients. In the same year, the firm successfully closed 7,546 transactions, with a total sales volume of approximately $43.6 billion.
Beyond transaction facilitation, Marcus & Millichap is dedicated to providing in-depth market research, consulting, and advisory services, empowering clients with data-driven insights to make informed investment decisions.
A Bright Future for Adept Ontario and Ontario’s Growth
The successful financing arrangement for Adept Ontario marks the beginning of an exciting new chapter for the Ontario region. The project is expected to drive economic activity, create job opportunities, and enhance the overall quality of life for residents and businesses in the area.
By introducing a thoughtfully designed mixed-use community, Adept Urban Development is contributing to the evolution of Ontario as a dynamic and desirable destination for living, working, and leisure. With MMCC’s expertise in securing financing and navigating the complexities of the lending market, the project is well-positioned for success.
As the first phase of a larger master-planned development, Adept Ontario sets the stage for future growth and innovation in the Marcus & Millichap Inland Empire. Its modern residences, vibrant retail spaces, and prime location make it a landmark project that will shape the region’s urban landscape for years to come.
