Berkadia Completes $125 Million in Combined Sales and Secures $85.7 Million in Financing for Two Multifamily Properties in Arizona
PHOENIX and IRVINE, Calif. – July 29, 2022 – Berkadia announced today the combined sales and financing secured for Encore 202 & 59 Roosevelt, a 376-unit garden-style multifamily property located in Phoenix, Arizona. Senior Managing Directors Ric Holway and Mark Forrester, Managing Director Dan Cheyne and Director Andrew Curtis of Berkadia Phoenix completed the $125 million in combined sales on behalf of the seller, Oregon-based Bean Investment Real Estate Inc. The buyer was Arizona-based Rise48 Equity, LLC., and the deal closed on July 20.
“Encore 202 & 59 Roosevelt was a unique opportunity to acquire 376 units completed in two phases consisting of 96 Class A apartment homes built in 2004, and 280 Class B apartment homes built in 1986,” said Holway. “Both phases have been extensively rebuilt with over $17 million of capex invested into the communities from 2019-2021. The communities were experiencing tremendous organic rent growth with current market rents trending 30 percent higher than effective rents, ideally positioning the asset for strong revenue growth.”
Managing Director Ed Kim and Associate Director Landon Domenico of Berkadia Irvine, secured the $85.7 million in acquisition financing on behalf of the buyer. The three-year bridge loan was financed through Rialto Capital Management, LLC.
“It’s exciting to see Rise48’s continual growth in the Phoenix market,” said Kim. “With Phoenix seeing strong migration trends and rent growth, Encore 202 & 59 Roosevelt property will perform well.”
Encore 202 is located at 5775 W Roosevelt St. The property features studio, one-, two- and three-bedroom floor plans in a low-density garden-style site plan. Community amenities include laundry facilities, a fitness center, a clubhouse and a spa.
59 Roosevelt is located at 801 N 59th Ave. The property features two- and three-bedroom floorplans in a low-density garden-style site plan. Community amenities include a clubhouse, a business center, a fitness center and a spa.
Both properties afford residents convenient access to Grand Canyon University, Phoenix Sky Harbor International Airport and the shops and restaurants along Interstate 10.