CBRE’s Capital Markets’ Debt & Structured Finance team announced it arranged a $39.7 million loan for the purchase of two multifamily properties in Phoenix, The Vicinity and Ascent 1829.
The Vicinity is located at 6131 N. 16th Street and was originally built in 1975. The complex is comprised of 10 multi-story buildings with a total of 125 units. Amenities include pool, clubhouse, barbecue area, laundry facilities and fitness center.
Originally built in 1980, Ascent 1829 is located at 1829 E. Morten Avenue and is comprised of 16 two-story buildings with a total of 180 units. Amenities include pool, barbecue and picnic area, cabanas, laundry facilities, fitness center, dog park and outdoor firepit.
The communities are within two miles of each other and are both adjacent to AZ-51, a major freeway that connects to the rest of the Phoenix metropolitan area. The assets are within 9 miles of both Downtown Phoenix and Phoenix Sky Harbor International Airport.
“The acquisition of The Vicinity and Ascent 1829 is a value-add play, whereby units will be upgraded, and value will be created by doing substantial unit renovations,” said Summers. “The buyer plans to spend approximately $18,000 per door on unrenovated units to further improve the quality of the assets and generate superior value.”
Birrell added, “Due to the two properties being in proximity to each other and in the same submarket, the borrower plans to create efficiencies by consolidating management and maintenance.”