Northmarq Phoenix’s Investment Sales team of Trevor Koskovich, Jesse Hudson, Ryan Boyle and Logan Baca brokered the $33.5 million ($167,500/unit) sale of The Arches, a 200-unit, garden-style community located at 6240 North 63rd Avenue in Glendale, Arizona. Northmarq’s Investment Sales team brokered the transaction for the seller, WWC XL VII, LP, an entity of Phoenix-based Western Wealth Capital.
Northmarq’s Debt and Equity team of Brandon Harrington, Christopher Gitibin, Tyler Woodard, Bryan Mummaw and Bryan Liu, provided financing for the buyer, Storm Properties from Torrance, California. Northmarq closed the loan in less than one month, from signed application, via a five-year, fixed rate Fannie Mae loan in the amount of $23.45 million.
“Our ability to rate lock and close quickly has been instrumental for our clients to navigate the current interest rate environment. We closed this Fannie Mae acquisition loan in 24 days for the sponsor, with the Thanksgiving holiday thrown in the middle,” said Harrington. “The borrower was able to execute an early rate lock and take advantage of the decrease in treasuries in the middle of the loan process.” Northmarq is a direct Fannie Mae DUS lender.
Built in 1985, The Arches is a 200-unit community with 13 buildings, two- and three-story, on 6.84-acres. The property includes one- and two-bedroom units that range in size from 616 sq. ft. to 901 sq. ft. The seller recently invested $1.8 million in the property including interior and exterior upgrades, deferred maintenance and common area improvements. Sixty-four percent of the units underwent premium renovations, including new flooring, paint, stainless steel appliances, tile backsplash and new light fixtures.
“There is an opportunity for the buyers to increase revenue and value by continuing the proven interior renovation program with the remaining 73 units,” explained Koskovich.
The Arches is located in the South Glendale submarket, which has seen strong economic and employment growth that has favorably impacted the demand for multifamily demand in the area. There are over 55,000 businesses that employ over 60,000 people within a ten-mile radius of the community.
At the end of the third quarter, 2022, the Phoenix multifamily market had a 5.8 percent overall vacancy rate with asking rents up 7.1 percent year-over-year. While recent metrics indicate a change of direction in the market, current conditions remain fairly consistent with the Phoenix region’s long-term supply and demand balance. Click here to read the full third quarter 2022 Phoenix Multifamily Market Insights report.