Northmarq’s debt and equity team of Brandon Harrington, and Tyler Woodard secured $85.31 million in construction financing for the development of The ONE @ Mountain Vista in Mesa, Arizona. The capital stack included a $59.2 million senior construction loan with a life insurance company, and preferred equity in the amount of $25.95 million from a real estate private equity firm. The combined senior construction loan and preferred equity was over 80 percent loan-to-cost (LTC.) The ground-up multifamily project is being developed by Talos Holdings, a Scottsdale based developer.
Located near the intersection of Signal Butte Road and Hampton Avenue, The ONE @ Mountain Vista is a 345-unit, multifamily property. Construction permits are in-hand and graters are ready to begin site work for community within days. An official groundbreaking ceremony celebrating the collaborative efforts from the City of Mesa and all other key stakeholders will be held in February 2023.
“We are thrilled to see this project come together and close for the Talos team. Even with today’s turbulent capital markets, our team was able to secure the entire capital stack up to 80 percent of cost,” said Harrington. “We can’t wait to see the finished project, which will be a great addition to the Mesa market.”
The ONE @ Mountain Vista community will include a resort style pool, fitness center, dog park and dog wash, open courtyards, and a sky lounge with great views of the Superstition Mountains that surround the project. Resident amenities include valet trash service, bocce ball in the courtyard, and a state-of-the-art access control system, including a gated entrance that residents control through their smart phone.
The ONE @ Mountain Vista offers convenient access to a wide array of nearby retail and grocery stores, restaurants, entertainment venues and outdoor activities including hiking and biking trails. The future project consists of approximately 26 studio units, 127 one-bedroom units, 172 two-bedroom units, and 20 three-bedroom units, with an average unit size of 875 sq. ft.
The metro Phoenix local economy continues to grow at a steady pace. Future growth drivers remain healthy and current property fundamentals are stronger than the market’s long-term averages. For more details see Northmarq’s Market Insights Greater Phoenix Multifamily 3Q 2022 report.