Brett Hood, senior vice president of NorthMarq Capital’s Chicago regional office, arranged construction take-out financing of $14,057,000 for Union @ Roosevelt, an 80 unit/9,100 sq. ft. Class A mixed-use property with attached parking located at 888 North 1st Avenue in Phoenix, Arizona. The transaction was structured with a 10-year term with 5-years of interest only. NorthMarq arranged financing for the borrower through its seller/servicer relationship with Freddie Mac.
Property features include: high speed internet access/Wi-Fi, washer/dryer, air conditioning, and heating, ceiling fans, smoke free environment, cable ready, double vanities, tub/shower, sprinkler system and wheelchair accessible rooms. Property services include: package service, controlled access, maintenance on site, property manager on site, concierge, courtesy patrol, furnished units, on-site retail, renters insurance program, online services, dry cleaning, energy star certified, planned social activities and a health club discount.
“The transit-orientated development is located just north of downtown immediately across the street from the Valley metro light rail within the historic Roosevelt neighborhood,” noted Hood. “The transaction posed a number of unique challenges, including a tax abatement structure unique to Arizona, whereby the tax abatement was effectuated through a ground lease (leasehold position) with the city; corporate master lease for 20 percent of the residential units; limited operation history; funding based upon trailing 1-month collections and a first-time Freddie Mac sponsor.”
