CBRE Capital Markets’ Debt & Structured Finance team headed by Jesse Weber and Andrew Behrens recently facilitated the refinance of Tuscany Ridge on behalf of AUK-Tuscany Ridge LLC (Aukum Group) out of Larkspur, California. The 336-unit multifamily property is located at 8203 West Oraibi Drive in Peoria, Ariz. The Freddie Mac cash-out refinance totaled $50,764,000 on a 10-year, term with 5-year interest only.
The Aukum Group purchased the property in an off-market transaction in August 2019 for $54.5 million ($162,000 per unit) and financed the acquisition with a $34 million, seven-year Freddie Mac Term Interest Only ARM.
“Since acquisition, the Aukum Group has invested in significant interior and exterior renovations, and plans to continue property renovations,” stated Jesse Weber, CBRE. “Future add-value projects include renovating classic units, repainting the exterior, enhancing the entrance and storefront, upgrading common area amenities, and rebranding the community with a new identity.”
Tuscany Ridge, located in the Arrowhead submarket of Phoenix MSA, is a garden-style property featuring five different unit types ranging from one to three bedrooms, and 740 to 1,320 sq. ft.
Built in 2004, the property had an occupancy rate of 97% at the time of refinancing. Property amenities include a resort-style swimming pool and spa, water feature and poolside ramada, 24-hour fitness center, racquetball court, dry sauna, resident clubhouse with a theater room, a children’s playground, and picnic areas with barbeque grills.
According to CBRE Research, Phoenix is the No. 6 market ranked by multifamily investment volume from 2015 to H1 2020 with $2.8 billion.
Tuscany Ridge is adjacent to the Loop 101 Freeway, providing community residents direct access to two large employment hubs: Arrowhead/North Peoria and the I-17 Corridor. The property is also located within five miles of Arizona State University (West Campus), Thunderbird School of Global Management, and Midwestern University.