Berkadia Completes $107 Million Sale and Secures Over $58 Million in Financing for Multifamily Property in Arizona
PHOENIX and IRVINE, Calif. – September 8, 2022 – Berkadia Institutional Solutions announced today the sale of and financing secured for 2150 Arizona Ave South, a 289-unit, two- and three-story garden-style multifamily property located in Chandler, Arizona. Senior Managing Directors Mark Forrester and Ric Holway, Managing Director Dan Cheyne and Director Andrew Curtis of Berkadia Phoenix investment sales completed the $107 million sale on behalf of the seller. The buyer was San Diego, California-based MG Properties, and the deal closed on August 31.
“2150 Arizona Ave South is a strong Class A multifamily community with proven value-add upside strategically located in South Chandler, one of the most vibrant apartment submarkets in Arizona,” said Forrester. “Well maintained and partially renovated by existing ownership, the buyer has a large-scale opportunity to improve 60 percent of the units that are not yet renovated and to further enhance the community areas of this asset.”
Managing Director Charles Christensen of Berkadia Irvine mortgage banking secured $58.013 million in permanent acquisition financing on behalf of the buyer. The 10-year loan was financed through Fannie Mae.
“Our team explored numerous financing options for the well-qualified buyer with an eye towards the best combination of long-term fixed rate financing, extended interest-only and lowest rate,” said Christensen. “Fannie Mae produced the most competitive option through its Green Financing Program, and we were able to utilize Fannie Mae’s streamlined early rate lock program to lock the interest rate shortly after we issued the loan application. This transaction was very rewarding as we were able to navigate through a turbulent financing market and deliver a clean closing for this great borrower.”
Built in 2001 and located at 2150 S Arizona Ave., this low-density (15.29 units per acre) property features one-, two- and three-bedroom floor plans with an average unit size of 994 square feet. Community amenities include two oversized swimming pools and spas, a fitness center, a clubhouse, detached garages, barbeque areas, playgrounds, a theater and game room and one of the largest multifamily dog parks in the submarket. The property is situated south of Loop 202 Freeway on Arizona Avenue and east of Chandler’s Price Corridor, a high-technology employment hub. Residents are afforded convenient access to the abundant and growing multifamily demand generators of Chandler and the Southeast Valley of Metro Phoenix.
“2150 Arizona Ave South offered a rare opportunity to acquire a low-density suburban community offering oversized apartment homes within the dynamic South Chandler submarket,” said Cheyne. “The community paired with strong market fundamentals, access to Grade A Schools and expanding high-wage employment centers created a great long-term investment.”