Dealmaker: Northmarq Arranges $50M in Multifamily
Northmarq arranged more than $50 million in financing for multifamily properties in Arizona and Oregon.
Northmarq Phoenix’s Investment Sales team of Trevor Koskovich, Bill Hahn, Jesse Hudson, and Ryan Boyle brokered $38.125 million for Standard Dobson Ranch, a 120-unit multifamily community located at 1325 West Guadalupe Road in Mesa, Ariz. The sale was the final Arizona property in a portfolio of multifamily properties that the team sold on behalf of SPL Companies of Denver. Northmarq’s Investment Sales team has one additional SPL Company multifamily property, Standard East, in Albuquerque that is anticipated to close at the end of May
The buyer of Standard Dobson Ranch was Phoenix-based Rise48 Equity LLC, which purchased the other Metro Phoenix properties in the portfolio, Standard Country Club in Mesa and Standard West and Standard 59 in Glendale in March. Northmarq Phoenix’s Debt & Equity team of Brandon Harrington, Bryan Mummaw, Tyler Woodard and Bryan Liu financed the acquisition of Standard Dobson Ranch with a $31,293,000 debt fund execution.
“With the purchase of Standard Dobson Ranch, the fourth property in the SPL portfolio, Rise48 Equity added a total of 582-units in the Phoenix Metro market to their portfolio in the past 60 days,” said Jesse Hudson, Northmarq Senior Vice President of Investment Sales. “Being able to scale up that quickly in a market with as much investor demand as Phoenix was a rare opportunity.”
Built in 1980, Standard Dobson Ranch includes 18 one-bed and 102 two-bed units that range in size from 600 to 900 square feet. Community unit amenities include swimming pool and spa, covered parking, on-site rental office, private balconies/patio and in-unit washer and dryer. The property was 97% leased at the time of sale.
“After a record-setting 2021, the local investment market is off to a strong start to 2022,” said Peter O’Neil, Director of Research in Northmarq’s Phoenix office. “During the first quarter of this year, 48 transactions closed totaling nearly $3 billion. This sales volume put the Phoenix market ahead of the pace established in the first quarter of 2021. The transaction count from the first three months of 2022 was up 9 percent from the same period in 2021, while total dollar volume was up 40 percent.
“Transaction activity is being fueled by strong operating fundamentals,” O’Neil added. “Market rents have spiked 27 percent in the past year and occupancy rates throughout the market are above 95 percent—about 200 basis points higher than the long-term average.
In Oregon, Conor Freeman, vice president of Northmarq’s San Diego regional office arranged $12,911,000 to refinance May’s Landing Apartments in Salem. The 96-unit garden-style multifamily property was recently constructed by Salem-based Rushing Group. The transaction was structured with a 10-year term and 10 years of interest-only payments. Northmarq secured financing for the borrower through its in-house Fannie Mae platform.
“May’s Landing qualified for a Green Globes certificate which enabled Fannie Mae to offer a meaningful reduction in spread,” Freeman said. “The permanent refinance allowed the Rushing Group to take out their interim bridge debt utilized during the property’s lease-up and return equity for their next multifamily development.”