Newmark announced the recapitalization of two Avanti Residential (Avanti) multifamily properties located in Glendale and Mesa, Arizona – The Pavilions at Arrowhead and Springs at Alta Mesa. Milestone Real Estate Investors V, LP, an affiliate of The Milestone Group, will partner with Avanti on The Pavilions at Arrowhead and Springs at Alta Mesa. The transactions represent the first segment of a recapitalization strategy comprising 18 properties and 3,700-units in Phoenix, Colorado Springs and Denver. The remaining recapitalizations will take place with numerous new equity partners throughout 2021.
In cooperation with Brad Goff, Brett Polachek and Chris Canter, Blake Okland, Alex Foshay, Terrance Hunt, Shane Ozment and Kevin McKenna, all of Newmark’s Multifamily Capital Markets Group, represented Denver-based Avanti in the property recapitalizations.
“Having taken this portfolio out at the start of the COVID-19 pandemic, the fact that these transactions are being successfully closed is a testament to the quality of ownership and the future of Avanti’s portfolio of assets,” said Vice Chairman and Head of Multifamily Investment Sales Blake Okland. “The strength and cross-market collaboration of Newmark’s full-service capital markets platform continues to be demonstrated as we execute portfolio transactions of this scale. Newmark’s capabilities up and down the capital stack provide clients with one-stop solutions.”
“We are excited to partner with Avanti on these recapitalization opportunities,” said Jeffrey Goldberg, Co-Managing Partner of Milestone. “Milestone has been a significant investor in Phoenix over the past nearly 20 years and we are excited to continue our growth in the Phoenix market. We believe the combination of Milestone’s fresh capital and market knowledge in partnership with a proven operator will enable these assets to fully realize their potential.”
“We look forward to this new phase for Avanti–as we develop these relationships–and the scalable growth we hope to achieve with our new JV partners,” said Avanti Residential CEO Christian Garner.
The Pavilions at Arrowhead–located at 7400 West Arrowhead Clubhouse Drive in Glendale–consists of 248 units, and the Springs at Alta Mesa–located at 1865 North Higley Road in Mesa–comprises 200 units.
“The two Phoenix-area assets are well-positioned in high-growth locations with the ability to continue executing value-add programs,” said Brad Goff. “Situated in one of the best neighborhoods in the Valley, the Springs at Alta Mesa is located in one of the fastest growing suburbs in Phoenix, known for some of the best school districts. Additionally, The Pavilions at Arrowhead’s location in Glendale provided the opportunity for the new partner to obtain part ownership in another asset in a high-growth location.”