NorthMarq sells Breckenridge Apartments for $32.8M
Breckenridge Apartments, located at 17625 North 7th Street in Phoenix, Arizona sold this month for $32,800,000.
The NorthMarq Multifamily team of Bill Hahn, Trevor Koskovich, and Jesse Hudson represented both the seller and the buyer in this transaction. The buyer was Phoenix-based 3rd Ave Investments, LLC.
“Breckenridge Apartments is a charming apartment community in a rapidly emerging neighborhood,” says Zev Hendeles, principal of 3rd Ave Investments. “When you factor in the value-add potential, strong and diverse tenancy, prime location and attractive loan structure, it’s easy to see that Breckenridge Apartments is a truly irreplaceable investment opportunity at a price well below replacement cost.”
“Breckenridge is a unique opportunity to reposition the property in today’s market” says Koskovich. “The asset previously was a fractured condominium and the buyer purchased the property under single ownership as the HOA was recently collapsed.”
Financing for the acquisition included a $27,550,000 loan from NXT Capital, which was arranged by NorthMarq Capital’s James DuMars, managing director, and Griffin Martin, vice president.
“Given the asset’s formidable upside and the sponsor’s impressive track record there was a large contingent of lenders pursuing this opportunity. Consequently, the terms were incredibly competitive,” says DuMars. “Working alongside our investment sales team provided enhanced communication and an extremely smooth execution.”
North Park Management LLC and North Park Condominium LLC of Dallas were the sellers.
The 308-unit Breckenridge apartment community, built in 1984, comprises 19 percent one-bedroom units, 48 percent two-bedroom units, and 33 percent three-bedroom units. The property, located on the east side of 7th Street north of Bell Road, is situated in the Deer Valley Corridor, which has experienced substantial job growth since 2015. Major employers include USAA, Discover Financial, American Express, and Honeywell Aerospace. In addition, Breckenridge is located between three of Phoenix’s major transit arteries—Loop 101, I-17, and AZ-51—providing tenants with an easy commute throughout the Valley.