Dealmaker: Alliant Credit Union Closes $13M Loan for Phoenix Multifamily
Alliant Credit Union, Chicago, closed a $12.6 million loan for Phoenix multifamily property Novella at Arcadia.
The seven-year non-recourse loan included a three-year interest-only period followed by a 30-year amortization schedule. The 36-unit property includes seven two- and three-story residential buildings.
“Phoenix is one of the fastest-growing metropolitan areas with net migration of a deep, talented workforce,” said Alliant Commercial Loan Originator Peter Margolin. “With population, employment, median household income and multifamily occupancy growth, the Phoenix metro and submarket metrics support a property like Arcadia.”
The transaction was first structured as a lower loan amount across 31 of the 36 units with an earn-out for the borrower to acquire the remaining five units. During the underwriting process the borrower negotiated to acquire the remaining five units and requested the full loan at closing, thereby fast-forwarding the earn-out. Alliant’s structure flexibility allowed for this change and a full loan was closed versus having to earn out additional proceeds over time.
Marcus & Millichap Capital Corp. Senior Vice President and Regional Executive for Capital Markets Greg Miskovsky referred the loan to Alliant.
The deal represented Alliant’s fourth loan closed in Arizona in recent years.