Berkadia Arranges $55.5M of Equity and Secures Programmatic Joint Venture Partner for Development of Two Multifamily Projects in Phoenix, Ariz.
Moderne Apartments, along with joint venture partner BCDC, will develop The Governor, with 176 units, and Moderne Arrowhead, with 182 units
PHOENIX (August 30, 2022) – Berkadia announces it has sourced both a joint venture partner and a preferred equity provider for developer Moderne to build two new multifamily communities in Phoenix totaling 358 units: The Governor and Moderne Arrowhead.
Cody Kirkpatrick, Noam Franklin, and Chinmay Bhatt of Berkadia JV Equity & Structured Capital secured the joint venture equity partner, BCDC as well as the preferred equity provider, a Texas-based investment manager, who together contributed a total of $55.5 million to the two projects. Construction commenced on The Governor August 1, 2022 and is scheduled to commence on Moderne Arrowhead September 19, 2022.
Moderne is a Phoenix-based, fully integrated real estate alternative investment manager focused on community-centric apartment and townhome development. Collectively, the Moderne team has delivered more than 35,000 units since 1990.
BCDC is a fully integrated real estate organization providing development and capital solutions primarily through partnerships. Based in Atlanta, it offers a wide variety of real estate services, from development and construction to equity and credit enhancements, to brokerage and property management.
Continued coastal migration, robust employment growth, relative affordability, and good quality of life have strengthened the Phoenix multifamily sector in the past year, according to Berkadia Research. In 2021, Maricopa County was the fastest-growing county in the United States, and a record high 15,000 units were absorbed in 2021.
“Our team had the privilege to work with the experienced team at Moderne and we knew that BCDC would be excited to form a programmatic partnership with such local experts,” said Kirkpatrick. “The capital stack on both deals were with some of the top providers of capital in the ground up multifamily space and we are excited to see the finished product in 2024,” added Franklin.
Located at 1717 E. McDowell Road, The Governor is a five-story, mid-rise apartment community with a total of 176 studio, one- and two-bedroom apartments averaging 739 square feet. The personal residence of Arizona’s first governor, W.P. Hunt, once stood on the project site, situated in the resurging Miracle Mile neighborhood. The preferred equity provider contributed $18.93 million in equity behind a $40.6 million senior loan by Pacific Western Bank. Completion is slated for June 2024.
Moderne Arrowhead is located at 15431 North 67th Avenue in Glendale, and is a three-story, garden-style apartment community with 182 units and surface parking. The property will offer studios, one- and two-bedrooms, and one-bedroom, one-bath carriage house units. The preferred equity provider contributed $18.10 million behind a $38.3 million loan from Pacific Western Bank. It is slated for completion in April 2024.