IPA Capital Markets, the capital-markets arm of Marcus & Millichap, has lined up a $123 million refinance for a 268-unit luxury apartment community in Burlingame, keeping a major Peninsula asset firmly in institutional hands. The five-year, interest-only loan carries a roughly 5.09% coupon and is paired with $26 million of preferred equity to hit the sponsor’s refinancing targets without pulling extra cash out of the deal.
Deal details
According to a press release from Business Wire, IPA’s Los Angeles team, led by Brian Eisendrath with Cameron Chalfant, Anita Paryani-Rice and Jesse Zarouk, arranged the five-year execution on behalf of a national multifamily owner and operator. The loan reportedly carries a debt-service coverage ratio of about 1.10x and features full-term interest-only payments, a structure that leans into cash flow today while betting on future rent and value growth. In the release, Paryani-Rice noted that "our IPA Capital Markets team was pleased to provide a cash-neutral refinance that met the refinancing goals of a long-term client," signaling this was more of a strategic reset than a grab for fresh capital.
Preferred equity partner
The capital stack did not stop at senior debt. The transaction also includes $26 million of preferred equity from Tokyu Land US Corporation, the U.S. investment arm of Tokyo-based Tokyu Land. On its site, Tokyu Land US Corporation highlights a ramp-up in preferred equity activity over recent years, particularly in U.S. multifamily and development projects, and this Burlingame deal fits neatly into that playbook.
Where this fits in the market
Structurally, the financing package, a life-company style loan combined with attractively priced preferred equity, lines up with 2026 capital markets trends that reward stabilized, higher-end multifamily assets in strong locations. Both Connect CRE and regional research from IPA’s San Francisco report indicate that while liquidity is available, it tends to cluster around properties with durable cash flow and solid location fundamentals.
For the sponsor, the cash-neutral refinance resets the debt stack while preserving operational flexibility. For the local market, it is another data point that institutional investors are still keen on Peninsula multifamily product, even in a choppier rate environment. The structure also highlights how layered capital stacks, combining long-term debt with preferred equity, are being used to bridge underwriting gaps in today’s market, according to the release from Business Wire.
