Marcus & Millichap Capital secures construction financing for mixed-use development in Ontario, California

Marcus & Millichap Capital Corporation, a leading provider of commercial real estate capital markets financing solutions, has successfully arranged construction financing worth $107 million for a significant multifamily development project in Ontario, California. The project, located at 4117 E Concours Street, is set to become a transformative addition to the Inland Empire‘s real estate landscape. With its strategic positioning adjacent to the Toyota Arena, the development will feature 384 multifamily residential units complemented by 26,000 square feet of retail space, offering a dynamic blend of urban living and commercial convenience.

The financing was secured by Stefen Chraghchian, senior director at Marcus & Millichap Capital Corporation’s Encino office. Chraghchian worked closely with Affinius Capital and Bank OZK to secure competitive financing terms on behalf of Adept Urban Development, the project’s developer. The successful arrangement highlights Marcus & Millichap Capital Corporation’s expertise in navigating the complexities of today’s real estate financing landscape, where economic uncertainty and fluctuating interest rates have made securing large-scale funding increasingly challenging.

How does the $107 million financing impact the Ontario real estate market?

The secured financing for the Adept Ontario project represents more than just another real estate investment; it signals a robust vote of confidence in the growth potential of Ontario and the broader Inland Empire region. This master-planned development is expected to catalyse further economic growth, particularly as the area experiences a surge in population and job opportunities. The project’s proximity to major transportation hubs, including Ontario International Airport, adds to its strategic value, enhancing its appeal for both residents and businesses.

According to Chraghchian, the Adept Ontario project will introduce a diverse range of unit types and amenities that are currently scarce in the Inland Empire market. “This development is designed to meet the evolving demands of Southern California’s growing population, offering modern living spaces with retail conveniences that will support a vibrant community,” he stated. The inclusion of digital media signage within the development reflects a commitment to integrating contemporary urban design elements that resonate with modern lifestyles.

Why is Marcus & Millichap Capital Corporation a leader in construction financing?

Marcus & Millichap Capital Corporation’s ability to secure such substantial construction financing arranged under challenging economic conditions underscores its leadership in the commercial real estate sector. As a subsidiary of Marcus & Millichap, the company leverages a vast network of capital sources, including institutional lenders, private equity firms, and traditional banks. This broad network enables the firm to structure complex financing solutions tailored to the unique needs of each project.

In 2023 alone, Marcus & Millichap Capital Corporation closed 1,076 transactions, totalling $6.73 billion in financing. The parent company, Marcus & Millichap, facilitated 7,546 transactions with a sales volume of approximately $43.6 billion, reflecting its dominant position in the U.S. commercial real estate market. These figures highlight the company’s capability to manage high-value projects across diverse real estate sectors, from multifamily developments to retail, hospitality, and office spaces.

Chraghchian emphasised the strategic approach taken to secure the Adept Ontario financing. “We navigated a complex lending environment, balancing the client’s objectives with the realities of the current market. Our deep relationships with capital providers like Affinius Capital and Bank OZK were instrumental in securing favourable terms,” he noted.

What makes Adept Ontario a unique multifamily development project?

The Adept Ontario project stands out due to its master-planned design, which integrates residential, retail, and entertainment components within a cohesive urban framework. This mixed-use model aligns with contemporary urban development trends that prioritise walkability, convenience, and community engagement. By offering 384 residential units alongside 26,000 square feet of retail space, the project caters to the growing demand for integrated living environments where residents can live, work, and socialise within a single, connected community.

Adept Urban Development, the project’s developer, is known for its innovative approach to real estate development, focusing on sustainable design and community-oriented spaces. The company’s vision for Adept Ontario includes a variety of unit configurations to meet diverse housing needs, as well as amenities designed to enhance the quality of life for residents. This approach not only addresses current housing demands but also anticipates future shifts in lifestyle preferences within the Inland Empire.

How does this project reflect broader real estate investment trends?

The successful financing of the Adept Ontario project is part of a broader trend in the U.S. real estate investment landscape, where mixed-use developments are gaining traction as preferred investment vehicles. Investors are increasingly drawn to projects that combine residential and commercial components, as they offer diversified income streams and greater resilience against market fluctuations.

Marcus & Millichap Capital Corporation has been at the forefront of this trend, with recent financing deals reflecting a strategic focus on mixed-use and multifamily projects. For example, the firm recently arranged $165.9 million in financing for a multifamily acquisition in Alexandria, Virginia, and secured $89.6 million for two multifamily developments in Chanhassen, Minnesota. Additionally, the company facilitated a $79 million construction loan for the redevelopment of the historic El Tropicano Hotel in San Antonio, Texas.

These transactions highlight the firm’s adaptability and deep market insights, enabling it to capitalise on emerging opportunities in diverse geographic markets. The common thread across these deals is the emphasis on developments that align with evolving demographic trends, urbanisation patterns, and economic drivers.

A catalyst for growth in Ontario, California

The $107 million construction financing arranged by Marcus & Millichap Capital Corporation for the Adept Ontario project marks a significant milestone in Ontario’s real estate development trajectory. As the Inland Empire continues to grow as a key economic hub in Southern California, projects like Adept Ontario will play a pivotal role in shaping the region’s urban landscape.

With its strategic location, innovative design, and strong financial backing, the project is poised to become a landmark development that sets new standards for mixed-use communities in the area. Marcus & Millichap Capital Corporation’s role in facilitating this financing underscores its expertise and leadership in the commercial real estate financing sector, reinforcing its reputation as a trusted partner for developers navigating the complexities of today’s market.