Marcus & Millichap Capital Corporation (MMCC) has secured $4.38 million in financing for the acquisition of a single-tenant restaurant property leased to Morton’s The Steakhouse. The property is located at 285 J Street, on the edge of San Diego’s Gaslamp Quarter.
Chad O’Connor, Executive Managing Director in MMCC’s San Diego office, arranged the loan on behalf of a private client through a national credit union. The six-year loan features a 6.09% interest rate, a 30-year amortization period, and a 65% loan-to-value ratio.
“This is a strong location for Morton’s, but a significant portion of the rent is tied to percentage of sales, which most lenders typically exclude from underwriting,” said O’Connor. “However, we were able to identify a lender who recognized the long-term consistency of sales at this site and the underlying strength of the real estate, allowing them to include the full percentage rent in their underwriting.”
