Marcus & Millichap’s IPA Capital Markets division announced that it secured a $116,525,065 construction loan to finance the build‑out of a 1.4‑million‑square‑foot industrial development in the Pacific Northwest. The loan, arranged by Gary Mozer and Lee Norman, provides 95% loan‑to‑cost financing at a fixed rate of 5.28% over five years, with yield‑maintenance prepayment terms and a penalty‑free window in the final six months.
The financing reflects the strong credit profile of the project’s tenant, which enabled the division to secure favorable terms. Gary Mozer said, “The credit nature of the tenant allowed us to secure 95 percent loan‑to‑cost financing at a five‑year, fixed rate of 5.28 percent.” The tenant’s creditworthiness, combined with the project’s scale and location, gave lenders confidence in the loan’s risk profile.
The project is positioned to meet growing demand for logistics and distribution space in the Puget Sound region, where industrial vacancy rates rose to 11.5% in the first quarter of 2026. Despite the uptick in vacancies, the ability to obtain a large construction loan indicates that well‑backed projects with strong tenants can still attract capital in a market that is experiencing headwinds.
The transaction underscores IPA Capital Markets’ capability to secure significant construction financing for large industrial developments. It also fits within Marcus & Millichap’s broader strategy to grow its financing business, as evidenced by the company’s Q4 2025 results, which reported total revenue of $244.0 million—up 1.6% year‑over‑year—and a 6.5% increase in financing fees.
The loan’s terms—95% LTV, 5.28% fixed rate, and a five‑year term—are among the most favorable in the current market, where many lenders are tightening underwriting standards amid rising interest rates. The deal demonstrates IPA Capital Markets’ ability to navigate a challenging credit environment and deliver value to both borrowers and investors.
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