Northmarq Phoenix’s Investment Sales team of Trevor Koskovich, Bill Hahn, Jesse Hudson, and Ryan Boyle brokered the $28 million sale ($116,667/unit) of Palomino Crossing, 750 East Irvington Road, Tucson, Arizona. The team represented the seller, AndMark Management Company of Los Angeles. The buyer was Next Round Asset Management, LLC (NRAM) from Chandler, AZ.
Northmarq Phoenix’s Debt & Equity team of Griffin Martin, Brandon Harrington, Bryan Mummaw and Tyler Woodard financed the acquisition with a $21.4 million floating rate bridge loan. The interest only loan was structured with a three-year term and arranged through Northmarq’s relationship with a bridge lender. “We were pleased to work with Next Round Asset Management as they expand their footprint in the Tucson market with the acquisition of Palomino Crossing,” said Martin. “We ran a competitive bid process, and they chose a lender that offered excellent terms and structure.”
Built in 1986, Palomino Crossing, is located in southeast Tucson in proximity to Tucson International Airport and Davis-Monthan Air Force Base, one of the largest employers in Pima County with over 10,000 workers. The complex includes fourteen, two-story buildings with one- and two-bedroom units that range in size from 510 to 875 square feet. Palomino Crossing was 97% leased at the time of sale.
“Palomino Crossing presented a blank canvas opportunity for Next Round to strategically reposition the property with in-unit renovations,” explained Hudson. “After renovations and possible ancillary income opportunities, like the installation of in-unit washers and dryers, there is a substantial opportunity for revenue growth.”
Palomino Crossing was the final property to close in a portfolio of four multifamily communities in Tucson that Northmarq marketed for AndMark Management Company. In April, Next Round Asset Management purchased another property in the portfolio, Mission Creek for $28.5 million.