Northmarq sells Del Mar Terrace in West Valley for $255M
Northmarq Phoenix’s Investment Sales team of Trevor Koskovich, Bill Hahn, Jesse Hudson, and Ryan Boyle represented Tide Equities, LLC in the $255 million ($251,976 per unit) purchase of Del Mar Terrace, a 1,012-unit multifamily community located at 7007 W. Indian School Road in Phoenix. Northmarq Dallas’s Debt & Equity team of Loren Heikenfeld, Kevin Leamy, Jeff Erxleben, Lauren Bresky and Joel Heikenfeld provided bridge loan financing and buyer’s equity for the acquisition, using their structured finance capabilities to fill almost the entire capital stack.
“The Del Mar Terrace sale represents the second highest overall sales price in the Phoenix market over the last 12-months, and coincidentally involved the second-largest apartment complex in metropolitan Phoenix,” explained Trevor Koskovich, President, Investment Sales, Northmarq. “The record-setting Phoenix multifamily investment market of 2021 hasn’t shown any signs of a slowdown during the first two months of 2022.” Strong renter demand and continued increases in rental rates over the next 12-months in the Phoenix multifamily market will continue to attract investors looking for upside potential in a compressed cap rate environment, according to Northmarq’s Q4 Phoenix Market Insights.
Built in 1986, Del Mar Terrace offers four one- or two-bedroom floorplans that range in size from 626 to 885 square feet. The amenities in the pet-friendly multifamily community include pool, fitness center and daycare center. The property offers easy access to Interstate 10 and Loop 101 and is surrounded by West Valley amenities including State Farm Stadium, Glendale’s Sports & Entertainment District including Westgate, Ak-Chin Pavilion and Desert Sky Mall.
The seller was Del Mar Terrace Apartments, LLC, an entity of Heers Development. The company provided professional management services for Del Mar Terrace along with five other Phoenix apartment communities through their property management division, Heers Management Company.