A short-term loan used to pay for the costs of building or renovating a property, with funds released in stages as work is completed and the work itself serving as the lender’s security. It matters to investors because the availability, terms, and management of construction financing determine whether a project finishes on time and on budget, affecting cash flow, returns and the risk that cost overruns or delays will erode or eliminate expected profits — like a pay-as-you-go loan that must be managed to keep a building project moving.
loan-to-costfinancial
Loan-to-cost is the percentage of a project’s total development or acquisition cost that is being financed with borrowed money, calculated by dividing the loan amount by the full cost of the project. It matters to investors because it signals how much equity the sponsor has at stake—like how much of a house you own versus what’s mortgaged—and higher ratios mean more leverage, higher potential returns, but also greater risk if costs rise or revenue falls.
mixed-use projecttechnical
A mixed-use project is a real estate development that combines two or more types of space—such as homes, shops, offices, or hotels—within the same building or complex. For investors it matters because the different uses can create multiple income streams and attract steady foot traffic, spreading risk like owning a small portfolio under one roof; however, they can also require more complex management and face varied zoning or leasing rules.
subterranean parking structuretechnical
An underground garage built beneath a building or parcel of land that stores vehicles and related systems. For investors it matters because it increases usable property space and potential rental or tenant value like adding hidden storage, but it also raises construction and ongoing costs, regulatory requirements, flood and ventilation risks, and maintenance obligations that affect project profitability and resale value.
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BEVERLY HILLS, Calif.--(BUSINESS WIRE)-- Marcus & Millichap Capital Corporation (MMCC), a leading provider of commercial real estate capital markets financing solutions, has arranged $85 million in construction financing for development of a 297,771-square-foot mixed-use project located at 55 North La Cienega Boulevard in Beverly Hills, California.
Sharone Sabar, executive managing director in MMCC’s Encino office, secured the financing on behalf of a private investor through a national banking institution. The four-year construction loan was structured at 65% loan-to-cost.
“Securing financing for a project of this scale and complexity in Beverly Hills reflects not only the strength and vision of the sponsorship team, but also lender confidence in the long-term fundamentals of the market,” said Sabar. “This development has been years in the making and will deliver much-needed housing, vibrant retail offerings, and an exceptional living experience in one of the most prestigious residential markets in the country. Upon completion, it is expected to be the largest residential complex in Beverly Hills’ history, creating a transformative addition to the city’s landscape.”
Sabar added: “The project will transform a long-held commercial site into 140 luxury multifamily residences and 13,303 square feet of ground-floor retail in one of Southern California’s most sought-after and supply-constrained markets. The sponsor acquired the property in October 2014 and spent more than a decade navigating the entitlement and planning process to bring the project to fruition.”
Situated along the La Cienega corridor, the six-story mixed-use development benefits from exceptional connectivity and visibility, with proximity to The Grove, Beverly Hills’ Golden Triangle, Santa Monica Boulevard, and major transportation routes throughout Los Angeles.
The project includes a three-level subterranean parking structure with 177 spaces, extensive community gathering areas, and a comprehensive amenity package. Residents will have access to a rooftop deck featuring a resort-style pool, restaurant and bar, coffee shop, recreation lounge, theater, wet and dry saunas, conference facilities, private workspaces, and a communal kitchen. Eleven units will be designated for low-income households and an additional 11 units for moderate-income households.
“As capital markets continue to favor clarity of execution and long-term value, transactions like this underscore the importance of patience, sponsorship quality, and strong lender alignment in advancing complex developments in competitive markets,” concluded Sabar.
About Marcus & Millichap Capital Corporation
Marcus & Millichap Capital Corporation (MMCC) is a subsidiary of Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada. MMCC provides commercial real estate capital markets financing solutions, including debt, mezzanine financing, preferred and joint venture equity, sponsor equity, loan sales and consultative and due diligence services. In 2025, MMCC closed 1,659 transactions totaling $11.9 billion. To learn more, please visit: marcusmillichap.com/financing.
About Marcus & Millichap
Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. Marcus & Millichap closed 8,818 transactions with a sales volume of $50.8 billion in 2025. The company had 1,808 investment sales and financing professionals in more than 80 offices at year end.
