Dealmaker: Berkadia Completes $60M in Arizona Multifamily Sales

Berkadia, New York, completed two multifamily brokerage and financing assignments for properties in Oro Valley and Tucson, Ariz.

Prime Residential, San Francisco, sold both properties to FW Group LLC, Mercer Island, Washington for a combined $60 million.

Berkadia Senior Managing Director Art Wadlund and Associate Clint Wadlund negotiated both sales and Managing Director Louis Weisman secured 10-year fixed-rate acquisition financing for both properties through Freddie Mac’s Capital Markets Execution program.

Art Wadlund said Overlook at Pusch Ridge on North Oracle Road in Oro Valley sold for $29.2 million on January 29 in the first major apartment sale in Oro Valley since early 2014.

“Overlook is one of fewer than 10 properties with over 100 units in Oro Valley, so there was significant competition for the property,” Art Wadlund said. “There is pent-up demand from both renters and investors in the area due to the lack of apartment properties, so we were glad to be able to provide attractive terms and complete the sale.”

Berkadia’s team also sold Harrison Park apartments in Tucson for $30.8 million.

“Harrison Park is located in a flourishing area that is attractive to investors,” Weisman said, noting that FW Group plans to reposition the 360-unit property through renovations.

Tucson area apartment vacancy improved 30 basis points in December to 7.9 percent while asking rents grew 2.3 percent to $676 per month.