NorthMarq closes the 181-unit Solstice at Arcadia apartments for $26.6M

Solstice at Arcadia Apartments

PHOENIX, ARIZONA – Solstice at Arcadia Apartments, located at 5401 East Thomas Road in Phoenix, sold this month for $26.6 million ($147,000 per unit).

The NorthMarq Multifamily team of Bill Hahn, Trevor Koskovich, and Jesse Hudson represented both the seller and the buyer in this transaction.

Tides at East Arcadia Owner, LLC, an entity form by Tides Equities, of Los Angeles, California was the buyer.

“Solstice at Arcadia was a broken condo asset that was repositioned under single ownership,” says Hudson. “Now that it is a fully intact apartment complex, there are major operational opportunities as well as a second-generation interior value-add play in one of the most sought after sub-markets in Phoenix.”

Solstice Phoenix Apartments, LLC of Phoenix, Arizona was the seller

The 181-unit Solstice apartment community, built in 1980, is situated on 5.52 acres with 34 percent one-bedroom units and 66 percent two-bedroom units. The property, located on the south side Thomas Road, east of 52nd Street, is minutes away from popular up-scale restaurants, retail centers, and major employment corridors such as The Biltmore and Downtown Phoenix. Centrally-located in the Arcadia section of Phoenix, along the Camelback corridor provides residents easy access to the popular Arizona Biltmore Golf Course, Arcadia Neighborhood, Camelback Mountain hiking, and a direct route to both uptown Phoenix and Old Town Scottsdale shopping and dining.

 




NorthMarq closes and finances the Paseo Del Sol apartments in Tucson for $12.5 million

Paseo Del Sol Leasing Office, 6280 S Campbell Ave., Tucson, AZ

TUCSON, ARIZONA – The 152-unit Paseo Del Sol Apartments, located at 6280 South Campbell Avenue, in Tucson, Arizona, sold this month for $12.5 million ($82,237 per unit).

The NorthMarq Multifamily team of Bill Hahn, Trevor Koskovich, and Jesse Hudson represented both the seller and the buyer in this transaction. AndMark Paseo del Sol Apartments, LLC, of Los Angeles, California was the buyer.

“Paseo Del Sol was the buyer’s fourth Tucson acquisition this year,” says Koskovich, president-NorthMarq Multifamily. “The Tucson multifamily market continues to strengthen as rents and submarket occupancy increase, and renter demand is rising as the local economy improves.”

“We are happy we were able to add this property to our Fund IV portfolio,” said Mark Mosch, CEO of AndMark Management Company, LLC. “This property is unique in that half the units are very large four-bedroom units, which are no longer being built in today’s market. We plan to upgrade these units and position them as quality affordable alternatives to the single-family houses in the submarket.”

Financing for the acquisition included a $10 million loan from Freddie Mac, which was arranged by NorthMarq Capital’s James DuMars, managing director, and Griffin Martin, vice president. “The client had numerous options on the table but selected NorthMarq/Freddie Mac due to their certainty of execution, excellent loan terms and smooth process,” says DuMars.

Summit Paseo Del Sol, LLC, of Los Angeles, California, an entity of Summit Equity Investments, was the seller. This was the second of two multifamily assets that NorthMarq has sold for Summit Equity Investments this year.

The Paseo Del Sol apartment community, built in 1994, is situated on 11.33 acres with 50 percent three-bedroom units and 50 percent four-bedroom units. The property, located on the west side of Campbell Avenue, south of Bilby Road, is near downtown Tucson.

The outlook for the Tucson multifamily market has been improving in recent months as the local economy has been on an upswing fueled by growth among a handful of recognizable companies. In recent quarters, Amazon, Caterpillar, and GEICO have announced plans to add nearly 3,000 workers in the Tucson metro area. In addition, Raytheon Missile Systems, one of the largest employers in Tucson, is in the middle of a $550 million expansion of its Tucson facility, a move that will result in an additional 2,000 high-wage employees at the company in the coming years. During the past 12 months, employment in Tucson has surged by 2.4 percent with the addition of over 9,000 net new jobs.




Colliers International Arrange Sale of ReNUE on Orange Apartments

ReNUE on Orange Apartments, 1137 E. Orange St., Tempe, AZ

Tempe, Arizona – The 110-unit ReNUE on Orange apartments, located at 1137 E. Orange St. in Tempe, Arizona sold for $13,000,000 ($118,182/unit).

Tides Equities, LLC, an entity formed by Tides Equities out of Los Angeles, California was the buyer. Tides Equities is a commercial real estate investment company focused on investments throughout the Western United States. They specialize in well-located, Class-B and Core Plus multifamily real estate with high value-add upside. Tides Equities brings institutional grade acquisitions acumen and operational efficiency to the traditionally non-institutional realm of real estate.

The HSK Team – Bill Hahn, Trevor Koskovich, and Jesse Hudson of Colliers International in Phoenix represented the seller. Seville Garden Apartments, LLLP, an entity formed by ReNUE Properties out of Scottsdale, Arizona was the seller. ReNUE Properties is a real estate investment firm specializing in the acquisition and rejuvenation of under-preforming, multi-family properties. Their strategy is restoring distressed properties into thriving communities.

“The buyer plans on continuing the interior upgrade program already initiated by the owner,” says Koskovich. “Within close proximity to Arizona State University, they will capitalize on increasing student housing demand from one of the largest undergrad student populations in the country.”

ReNUE on Orange consists of 5 buildings with 97,890 square feet of space situated on 2.81 acres. The community is a blend of 47% 1-bedroom units and 53% 2-bedroom units. Newly renovated units include new wood style flooring, stainless steel appliances, new countertops, brushed nickel hardware, new light fixtures, and paint.

The community is located on the south side of Orange Street just south of University Drive. In the desirable Tempe submarket, the property is less than two miles from Downtown Tempe which contains many employment opportunities, dining options, and recreational amenities. Mill Avenue District, Sun Devil Soccer Stadium, Tempe Town Lake, and Tempe Market Place are all within minutes from the property. Nearby employers include State Farm, Chase Bank, Insight, and Wells Fargo.