Our Phoenix office offers investment sales expertise for multifamily and manufactured housing properties and a complete range of financing options for all types of commercial real estate. We serve the entire Southwestern region and can arrange commercial real estate loans for any property type through our unmatched network of lending partners. Call our local Phoenix office to learn more about our commercial real estate financing, loan servicing and multifamily investment sales capabilities. (License: AZ CBK 0919710 and CBKBR 0117381)
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PHOENIX, ARIZONA (February 10, 2023) – Don Vedeen, vice president for national manufactured housing investment sales with Northmarq, was highlighted in a recent story published in Multi-Housing News (MHN) titled, “Are Manufactured Homes a Good Investment in 2023?” The story surveys a group of industry experts as they investigate the historically stable assets class, and offer their predictions.
Vedeen told MHN that in 2022, investors compressed cap rates to levels that would have been deemed “laughable” 12-to-18 months earlier. But rapidly increasing interest rates threw a wrench into investment volume in the second half of the year.
“Many investors put a full stop on acquisitions, which has slowed the market down. Buyers are looking at the higher interest rates as an opportunity to buy properties at a higher cap rate or lower valuation,” he said. “The problem is that owners have grown accustomed to having brokers ‘wow’ them with inflated values and that isn’t happening right now. Buyers are looking for a deal, while sellers are holding onto hope of a large sale price… I see this as a waiting game to see who gives in first—buyers or sellers.”
One the key points Vedeen made to MHN focused on how manufactured housing projects could be employed to mitigate the U.S.’s housing shortage as financing traditional housing development becomes increasingly difficult “There needs to be more regulation allowing manufactured housing to increase its supply,” he said.
Northmarq has been involved in several manufactured housing developments over the past few years, but compared to traditional apartment developments, new manufactured housing communities are almost nonexistent. In Texas alone, for example, the brokerage estimated that some 20,000 MHC units were at some stage of development at the beginning of this year, but the need for affordable housing in the state is incomparably higher.
“Just Googling affordable housing need in Texas shows a need for over 600,000 rentable units right now,” Vedeen said. “Manufactured housing could help that but the red tape to get the communities built is exhausting.”
When asked about what lies ahead, Vedeen stated that “Investors need to plan for the long term. I envision the market to continue to cool down in the first and the second quarter, but I think at some point a domino will fall and investors will begin buying again and compressing cap rates despite the interest rate.”
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PHOENIX, ARIZONA (January 23, 2023) – Trevor Koskovich, president – investment sales, joined the company of Arizona’s top male CRE leaders who received AZ Big Media’s recent “25 Male Leaders to Watch in CRE for 2023” recognition.
The award comes in the context of an atmosphere where It’s hard to know what to expect from Arizona’s economy in 2023. The labor market remains tight, with low unemployment, high levels of labor market churn, and a tremendous number of open jobs. But any income gains we are making are more than offset by inflation. Rising mortgage interest rates and low affordability have combined to generate a decline in home sales. The publication notes that as the industry ventures deeper into 2023, one thing is certain: Arizona is filled with brilliant minds and innovative companies that are certain to guide us through any economic storms that come our way.
The editorial board for Az Business and AZRE magazines met with Arizona industry leaders during the previous year to identify the AZ Big 100 for 2023: The 100 people and companies who will shape Arizona’s business community in 2023.
PHOENIX, ARIZONA (January 18, 2023) – The editorial board for Az Business and AZRE magazines met with Arizona industry leaders to identify the AZ Big 100 for 2023. The list was celebrates the brilliant minds and innovative companies that are equipped to guide the industry through economic storms, such as rising mortgage interest rates and low affordability combining to generate a decline in home sales.
In October, Northmarq, a leader in commercial real estate capital markets, announced the completion of its acquisition of Stan Johnson Company (SJC), a real estate brokerage and advisory firm that focuses on investment sales across multiple asset classes. The acquisition also includes the purchase of Four Pillars Capital Markets (FPCM), a debt/equity intermediary for commercial real estate assets.
The acquisition of these two firms means Northmarq now has nearly 1,000 professionals across its investment sales, debt/equity financing, loan servicing and fund management operations. The expanded company transacts $23 billion in debt/equity volume and $15 billion in investment sales volume annually, and services a commercial loan portfolio in excess of $76 billion.
With the addition of SJC and FPCM to its existing multifamily sales platform, Northmarq will now offer services across all major property types, including office, healthcare, industrial, retail, self-storage, multifamily and more.
Also in October, Northmarq’s Debt and Equity team of Brandon Harrington and Tyler Woodard secured a $33,327,212 construction loan for the development of The Aster at Mountain Vista in Mesa. The ground-up development is a joint venture between Scottsdale-based Ascent Companies and Stave Properties, with Crown Builders as the general contractor.
“The capital markets for construction financing are challenging but we cast a wide marketing effort and were able to secure a fixed rate construction loan for this project,” Harrington says. “Lenders are still active for best-in-class developers and projects given the continued lack of supply in certain areas of Phoenix.”
Northmarq’s Phoenix office offers investment sales expertise for multifamily and manufactured housing properties and a complete range of financing options for all types of commercial real estate. Northmarq’s Phoenix office serves the entire Southwestern region.and can arrange commercial real estate loans for any property type through its unmatched network of lending partners. Northmarq is an industry-leading capital markets resource for commercial real estate investors, offering seamless collaboration with top experts in debt, equity, investment sales, and loan servicing. Northmarq combines industry-leading capabilities with an open, flexible structure, enabling its team of seasoned professionals to create innovative solutions for clients.
PHOENIX, ARIZONA (January 17, 2023) — Northmarq’s Phoenix investment sales office announced that Ryan Boyle has been promoted to vice president. He will continue to work under the mentorship of Jesse Hudson, managing director, and Trevor Koskovich, president – investment sales. As vice president, Boyle will continue to specialize in private capital multifamily sales throughout the Southwestern United States. Additionally, he will coordinate with the ten debt and equity experts four other brokers also in the Phoenix office.
“Ryan has been an integral part of the team since joining in his role as associate,” said Hudson. “We are excited to see Ryan deliver the same superior level of service to clients seeking multifamily solutions in Phoenix and the Southwest, while also using his fresh perspective and local expertise to find new opportunities.”
Boyle attended Arizona State University where he earned his Bachelor of Arts in Communications and is a licensed agent with the Arizona Department of Real Estate.
“I am grateful for all the mentorship Jesse and Trevor have provided since my start at Northmarq. I look forward to continuing to utilize the Northmarq platform to provide clients with industry leading multifamily service and solutions,” said Boyle.
Recently, Boyle completed the following sales:
PHOENIX, ARIZONA (January 12, 2023) — Northmarq’s status as a leading Build-to-Rent platform was further solidified with the addition of Shannon Hersker, senior vice president, to the company’s Phoenix debt/equity team. She is responsible for originating debt and equity solutions through bank, debt fund, life company and direct Fannie Mae and Freddie Mac financing. With a specialty in financing build-to-rent (BTR) projects, Hersker will assist clients with sourcing equity, construction lending, bridge debt and permanent financing. She will collaborate with the Northmarq investment sales team on BTR acquisitions and dispositions.
“We are thrilled to have Shannon join the Phoenix Northmarq debt and equity team. Her experience and knowledge in the build-to-rent sector will continue to distinguish our national build-to-rent platform as the preeminent one stop shop for build to rent investment sales along with permanent and construction debt and equity,” said Brandon Harrington, managing director. “Shannon’s competitiveness and drive to deliver exceptional results for her clients is a great cultural fit at Northmarq.”
Hersker entered the BTR space in its infancy, allowing clients to access her unique perspective and knowledge of the product type for their financing inquiries. Prior to joining Northmarq, she was Director of Capital Markets at Walker & Dunlop for five years where she was responsible for nationwide loan originations for multifamily, BTR and commercial assets. She worked with developers, investors, and owners to provide debt solutions through various lending sources. In her role, Hersker created a national dedicated Build for Rent platform and became a leader in the BTR financing space.
“I couldn’t be more excited to join what I would consider the nation’s top build-to-rent platform. Working in conjunction with our financing experts, as well as our national investment sales team will allow me to problem solve and take a full-service approach to find solutions for clients,” said Hersker.
Hersker is involved in several industry organizations, including NAIOP, Valley Partnership and Urban Land Institute (ULI). She has taken on many leadership roles within ULI, including serving as a Partnership Forum Group Leader for seven years. Currently she is a Co-Vice Chair of the Membership Committee, sits on the Trends Day Committee, and is a ULI NEXT Group Facilitator for the third consecutive year. Additionally, she volunteers as a classroom facilitator through the Urban Plan program and has participated in Philanthropy events for under privileged children in the Phoenix area.
Hersker graduated from the W.P. Carey School of Business at Arizona State University. She earned a Bachelor of Science degree with a major in marketing and a minor in communications. In addition to receiving her ALTA Certifications, Title 101 and Title 102, Hersker is currently earning her Commercial Investment Member (CCIM) designation.
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PHOENIX, ARIZONA (October 6, 2022) — Northmarq’s Phoenix office has announced the addition of Christopher Gitibin as senior vice president – debt/equity. Gitibin will advise clients on multifamily debt/equity, including Fannie Mae, Freddie Mac, HUD, debt funds, local banks, and Northmarq’s premier life company network.
Prior to Northmarq, Gitibin served for more than seven years as director of capital markets in the Phoenix Walker & Dunlop office, focusing on a unique array of multifamily debt/equity solutions for private and institutional investors. He has served as an integral part for many clients in raising equity and providing competitive capital.
In his role as senior vice president, Gitibin works alongside the production team in Phoenix to assist clients with financing in the commercial real estate market. Additionally, Gitibin will coordinate with the eight investment sales experts also in the Phoenix office.
“We couldn’t be happier to have Christopher join the debt and equity team in Phoenix where he is a perfect cultural fit,” said Harrington. “Chris has an unrelenting drive for achieving exceptional results for his clients and will be invaluable to our growing team at Northmarq. His background complements the unparalleled expertise of our capital markets financing business in the southwest.”
Gitibin is a graduate of the W.P. Carey School of Business at Arizona State University. He received his master’s degree from The Thunderbird School of Business Management with a focus on International Business Administration. In addition, he received his Arizona insurance license, and holds an active Arizona real estate license. Gitibin has been an active member of the Phoenix ULI association, NAIOP, AMA, and has participated in several philanthropy events for under privileged children in the Phoenix area.
PHOENIX, ARIZONA (September 27, 2022) – Brandon Harrington, senior vice president/managing director of Northmarq’s Phoenix debt/equity office, recently provided expert analysis the build-to-rent industry in an AZ Big Media story titled “Here’s how the build-to-rent boom is re-shaping Phoenix.”
Topics covered include Phoenix market fundamentals, drivers of demand and consumer preference. Harrington noted that elevated home prices and the current interest rate environment make it difficult to qualify and afford a home mortgage, which is driving demand for multifamily options like BTR communities.
“I’m super bullish on multifamily, BTR and all forms of housing, because we do have a lack of supply,” Harrington explained. “We have major population growth, and we have huge job growth. A lot of those jobs aren’t even here yet, so I think we’re going to continue to see huge demand for housing going forward.”
Phoenix, Arizona (September 6, 2022) — Jesse Hudson has been promoted to managing director – investment sales in Northmarq ’s Phoenix office. Hudson joined Northmarq in 2018 as vice president – investment sales and has been a driving force in the growth of the Northmarq investment sales business. Since joining the company, Hudson has overseen more than $5 billion in transaction value thanks to developing winning strategies and brokering solutions for multifamily investment sales acquisitions and dispositions.
In his new role, Hudson will co-lead the Phoenix investment sales team, along with Trevor Koskovich, president. He will also continue coordination with the nine debt/equity experts also in the Phoenix office.
”Jesse has been an integral part of our team since day one of Northmarq’s successful break into the investment sales arena,” said Koskovich. “Having worked side-by-side with Jesse for many years, I am excited to see the value his oversight and co-management of the office provides our clients.”
Prior to joining Northmarq, Hudson served for five years as an associate vice president for HSK Multifamily at Colliers International. He is a graduate of Arizona State University.
Recently, Hudson collaborated with his Phoenix-based team to secure the following:
PHOENIX, ARIZONA (July 27, 2022) – Brandon Harrington, managing director, Bryan Mummaw, managing director, and James DuMars, managing director of Northmarq’s Phoenix debt/equity team were selected by ConnectCRE as recipients of their Top Mortgage Brokers & Lenders award. The recognition honored top industry leaders and professionals who experienced an especially impactful year in 2021.
The Phoenix team finished within the top 10 offices in 2020 and 2021 for the company nationwide, completing 127 transactions totaling more than $2.39 billion the previous year.
The team highlighted their wide range of executions, ranging from $3.7 million to $191 million, as well as a recent four-property, $315-million portfolio with a debt fund execution.
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MINNEAPOLIS, MINNESOTA (June 16, 2022) – Trevor Koskovich, president of Northmarq’s Investment Sales platform, was called upon by Southeast Multifamily & Affordable Housing Business to share his insights into the 1031 business, specifically on deal velocity and current market conditions amid a choppy economy, the rise of DST’s and legislative threats to like-kind exchanges.
Brokers and qualified intermediaries expect rising interest rates to impact transaction volume of like-kind exchanges, but they emphasize that investors are still motivated to defer paying capital gains taxes.
Southeast Multifamily & Affordable Housing Business: Has your company carved out a niche within the 1031 exchange arena? Do you work with certain types of property investors exclusively? Do you concentrate on specific markets or regions in the country?
Koskovich: Our 1031 niche is really geared toward the private investor. We serve primarily family offices, syndicators and high net-worth investors. Northmarq Investment Sales has a national footprint and we are actively transacting 1031s across our national platform.
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Other Western cities are also seeing a surge in development and investment activity
PHOENIX, ARIZONA (December 22, 2021) – Trevor Koskovich, president – investment sales, shared his insight in Western Real Estate Business on one of the hottest asset classes in the U.S. rental housing market: build-to-rent communities. Topics include: Who is Renting, Phoenix Inventory Doubling, and Capital Pouring In.
Demand for these properties, defined as “purpose-built, single-family rentals,” has been particularly insatiable in Phoenix and across the Western United States, and there are no signs of a slowdown as demand continues to outpace supply. Thousands of new units are being built.
Renters are attracted to the BTR lifestyle as it offers the advantages of a single-family home without the responsibilities of owning a house. It also provides the convenience of low-maintenance apartment living, but with more space and privacy.
These detached units also come with backyards as well as communal amenities like pools, dog parks, party spaces and fitness centers. Single-family renters are generally “stickier” than typical apartment renters because they view the home as a longer-term commitment, resulting in higher renewal rates than apartments.
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Report identifies new markets, market drivers, and investment opportunities
MINNEAPOLIS (Oct. 15, 2021) – Northmarq, which is an industry leader in the growing build-to-rent market, has issued its Oct. 2021 special report, authored by the company’s national Build-to-Rent team and Research Director Pete O’Neil. Led by Jeff Erxleben, executive vice president/executive managing director, and Trevor Koskovich, president-Investment Sales, the group of 12 experts in debt, equity, and investment sales, has completed more than $1.5 billion in single-family built-to-rent sales transactions in the U.S. and has over 15 active listings and assignments.
“While this property type first appeared in Phoenix, we are now seeing activity across the country and built a team focused on the asset from start to finish. By combining financing and sales experts on the same team, we can provide the best insights to clients across the country,” said Koskovich.
As part of the specialty practice group’s responsibilities, they work with Northmarq’s Director of Research Pete O’Neil to compile a research report twice a year. The second half report, issued today, identifies three key trends:
Billions of dollars of debt and equity capital are moving into this investment class with new entrants on the scene seemingly monthly. Lenders recognize build-to-rent’s impressive fundamentals and are offering developers and investors new options for structuring their financing. What was a niche product in only a handful of markets a couple of years ago is spreading across some of the fastest-growing areas of the U.S., particularly the Southwest, Texas, and the Southeast.
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PHOENIX, ARIZONA (July 14, 2021) – NorthMarq’s Phoenix investment sales team of Trevor Koskovich, Bill Hahn, Jesse Hudson, and Ryan Boyle ended the second quarter of 2021 closing 15 unique multifamily transactions with a combined sales volume of $419,715,000. Additionally, NorthMarq’s debt and equity team financed nine of the fifteen transactions with combined loan amounts of $280,453,537.
“We are continuing to grow the NorthMarq brand, we have opened several new offices and we hope to continue the momentum throughout the year with an even more successful third and fourth quarters,” said Trevor Koskovich, President of Investment Sales with NorthMarq.
“Out of state investors, particularly investors from the West Coast, continue to see the potential of the multifamily family market in Phoenix. Between job growth, new developments and the cost of the living, Phoenix is the ideal location for buyers to receive tremendous returns on their investments.”
Notable transactions included:
Manufactured housing is no longer the overlooked property type that it once was. It was one of the best performing sectors in 2020, and that performance is attracting new capital to the space and heating up competition for investment sales.
Manufactured housing has gone from a niche asset class to a sector that is in the spotlight thanks to its proven ability to deliver stable cash-flows with rent collections that remained consistent even during the pandemic. According to NorthMarq’s latest research report, occupancies at manufactured housing communities held fairly steady at 93.7% during first quarter with annual rent growth at a healthy 4%.
Buyer demand is evident in strong market pricing and cap rate compression. Cap rates averaged approximately 6.5 percent during Q1 – 50 basis points lower than the average cap rate for 2020. If interest rates stay the same, those cap rates could move lower this year.
Following robust sales activity in the fourth quarter, transaction volume did drop sharply in first quarter by about 40%. However, that slowdown is not surprising considering the flurry of activity that occurred late last year due to pent-up demand from the pandemic and uncertainty ahead of the November presidential election. People moved up their investment timelines due to questions about what a new administration would mean for changes in tax law.
Sales activity is regaining momentum in second quarter and transaction volume could very well jump in the second half of the year as debate heats up on President Biden’s proposed tax changes. There has been an uptick in for-sale inventory hitting the market in second quarter as some owners look to get ahead of potential increases in the capital gains tax rate or changes that would limit the use of 1031 Exchanges.
While there is no shortage of for-sale inventory, the opportunities that are available are becoming more expensive. People need to be thoughtful in their proformas and where they can take a manufactured housing community, because most of the deals on the market today are going to require some work to create stable, cash-slowing assets.
As buyer competition continues to heat up, some of the larger buyers – the REITs and private equity groups – also are expanding their investment criteria to win deals. Previously, the larger buyers were focused on acquiring 200-site communities and five-star communities in good markets. Now those same buyers are willing to consider smaller manufactured housing communities or slightly lower quality that come with the potential to do clean-up, make improvements and improve leasing. Those value-add buying opportunities are proving to be worth the time and effort as they result in attractive returns for investors.
Looking ahead, new manufactured housing communities in the development pipeline have the potential to elevate the asset class by providing quality, safe, clean affordable housing options for people. NorthMarq is helping to source the debt and equity for some of these projects, including a $150+ million construction loan for a project in Texas that is expected to develop nearly 4,000 new manufactured housing sites. The new communities are helping to further distance the sector from the outdated stigma of a “trailer park” traditionally associated with the sector. As other states see successful communities emerging as affordable housing solutions, it could prompt those states to approve legislation that would make it easier to develop new manufactured housing communities. Such activity would be a big positive for the industry as it would create new investment opportunities and expand the inventory of institutional-quality assets.
Don Vedeen, vice president in NorthMarq’s Phoenix office, was among the winners announced for the Connect Commercial Real Estate 2021 Next Generation Awards. In one of the most challenging years on record for the industry, the recipients overcame the hurdles and excelled in business and leadership in the community.
Vedeen leads NorthMarq’s Manufactured Housing Communities practice group, which has grown to seven professionals and more than $300 million in sales transactions and loan referrals for 5,000 total sites since 2019.
Highlights from Vedeen’s nomination include:
From a competitive field of nominations, Connect selected 100-plus winners representing each of the following regions: National, California, Seattle & Pacific Northwest, Phoenix & Southwest, Texas, Chicago & Midwest, Boston & New England, New York & Tri-State, Washington, D.C., Atlanta & Southeast, and Florida & Gulf Coast.
PHOENIX, ARIZONA (May 12, 2021) — San Diego-based Tower 16 Capital Partners has acquired a two-property multifamily portfolio consisting of 332 units in the greater Phoenix area for $55 million. Summerhill Place Apartments is in Glendale, Ariz., and consists of 232 units built in 1986. The Villas at Montebella Apartments, located in Peoria, Ariz., includes 100 units built in 1974. The properties were acquired from a private seller in an off-market transaction.
Tower 16 was represented by Jesse Hudson, Bill Hahn, Trevor Koskovich, and Ryan Boyle with NorthMarq’s Phoenix multifamily team. NorthMarq also secured debt financing for the buyer, led by Brian Mummaw, Brandon Harrington, and Tyler Woodward.
“This acquisition marks our third and fourth properties acquired in the Phoenix market,” said Tower 16 Co-Founder Mike Farley. “We believe the demand drivers for multifamily housing in Phoenix will continue to grow in the coming years, and we are excited to be providing a naturally affordable product to meet that demand.”
Since its founding in 2017, Tower 16 has made similar moves into markets throughout the West, having acquired approximately 4,000 units in California, Las Vegas, Phoenix, Tucson, and Denver. The company seeks markets with increasing demand for workforce housing driven by job growth and in-migration but with relatively low levels of new supply. According to company executives, Tower 16 intends to build a portfolio of more than 2,000 units in the Phoenix market over the next several years.
Summerhill Place is located at 6801 W. Ocotillo Road in Glendale, Ariz. The property is just minutes away from Highway 60 and only a few miles from major employment centers on the west side of Phoenix. Villas at Montebella is located at 10860 N. 85th Ave. in Peoria, Ariz., and is conveniently located between Highway 60 and 101 loop. Tower 16 will be overseeing close to $6 million in upgrades and renovations at both properties including modernized unit upgrades, a new clubhouse, gym, and updated pool areas. The company will also be adding outdoor amenities including barbeques, seating, and outdoor gaming areas.
“We plan on making numerous upgrades to modernize the properties and provide a better tenant experience,” said Tower 16 Co-Founder Tyler Pruett. “We’re excited to watch the transformation of these properties over the next six to 12 months, and we think our tenants will be very happy.”
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MINNEAPOLIS, MINNESOTA (February 5, 2021) – Brad Burns, a 15-year FHA/HUD origination expert, joins NorthMarq as a senior vice president based in the Phoenix office. During the last few years, he originated more than $1 billion in financing through HUD, Freddie Mac, Fannie Mae, banks, and debt funds, focusing on multifamily, affordable, and seniors/healthcare properties.
His extensive experience with HUD-insured loan products offers clients specific expertise navigating the HUD loan process from origination all the way to closing.
Prior to joining NorthMarq, Burns spent four years as senior director in Walker & Dunlop’s FHA group and six years in Berkadia’s FHA group. While at Berkadia, he also served as an FHA MAP-approved underwriter.
Burns joins NorthMarq’s Phoenix office, one of the fastest growing in the company, where he will partner with Managing Director Brandon Harrington, and collaborate with the seven other debt and equity experts and team of 15 investment sales professionals.
“We’re extremely excited that Brad has joined our Phoenix team,” said Harrington, managing director – debt and equity, Phoenix. “His expertise in FHA/HUD is second to none and will bring great value to our multifamily clients when evaluating their best options for financing.”
In business since 1960, NorthMarq has grown to more than 600 employees through more than 20 acquisitions, a $64 billion loan servicing portfolio and access to hundreds of capital sources.
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MINNEAPOLIS, MINNESOTA (January 19, 2021) — NorthMarq announced two promotions in the company’s fast-growing investment sale business, which now offers multifamily investment sales in 16 offices across the U.S.
Jesse Hudson, based in the Phoenix office, was promoted to senior vice president due to his rapidly growing business pipeline and a strong network of recurring clients. Gabe Tovar, based in Kansas City, was promoted to vice president following his leadership on a new Kansas City construction report and the creation of a technology platform to support business growth that led to a dramatic increase in production volume.
Trevor Koskovich, president – Investment Sales, said that while the overall team had strong production in 2020, Hudson and Tovar also led larger initiatives and developed new business strategies.
“Jesse has been part of my team for nearly 10 years, growing from a junior broker to an important leader and expert for our clients,” said Koskovich. “Gabe, while still early in his career, brings innovative ideas to both clients and our company.”
Real Estate Forum, the commercial real estate industry’s key monthly publication, selected Trevor Koskovich, president – Investment Sales, as one of 15 Influencers in Multifamily for 2020. Koskovich is leading the growth of NorthMarq’s Investment Sales platform, which has grown into 15 of the company’s 38 offices since April 2018.
In just over two years, the team has grown to over 60 professionals in 15 offices, from fewer than 20 transactions in the first year to more than 120 in 2019 and 2020. The business has already completed more than $3 billion in multifamily sales volume, with $1.5 billion completed in referral business to debt and equity, with hundreds of active listings scheduled to close by the end of 2020.
“Trevor’s enthusiasm and tenacity have helped us build a very successful investment sales platform in a very short amount of time. Not only is he bringing great new talent to NorthMarq, he’s also driving a new level of collaboration between investment sales and debt and equity producers in our local offices, leading to great results for our clients, and feeding new business activity,” said Jeffrey Weidell, NorthMarq’s chief executive officer.
Koskovich is a thought-leader in the industry, appearing frequently in industry publications and events. This month, he is a featured speaker in a Multifamily podcast hosted by John Salustri from Globest.com. Listen to the lively discussion here: Multifamily Investors Ride COVID’s Storm on Strong Fundamentals.”
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James DuMars, senior vice president/managing director of NorthMarq’s Phoenix office shed some light on the current pandemic in a Commercial Executive Magazine feature titled “The Art of the Pivot.” Discussing his experience getting through previous market upheavals, such as the Savings & Loan Crisis and the Great Recession, DuMars looks into what might be instore for a post-pandemic world.
“I was a college intern at an investment sales firm during the S&L crisis. As the market downturn persisted, I saw establishment professionals at the firm losing cars and luxury homes back to the bank, and in some cases even their life savings they had invested in overleveraged real estate,” said DuMars. “Seeing this had a profound effect on me. Several years later when I was 31, I had my first big year as a top producer for NorthMarq, and instead of spending on a new home and car, I took my first large bonus and paid off all my debts. This gave me clarity and allowed me to focus on my customers’ needs instead of worrying about my financial needs.”
Read the full story and check out our recently completed transactions.
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Brandon Harrington, a well-respected multifamily debt expert, joins NorthMarq to collaborate with the company’s eight-person multifamily investment sales team led by Trevor Koskovich, president-Investment Sales. Harrington, managing director-multifamily debt and equity, is a significant originator of multifamily debt across all capital sources, closing nearly $1 billion in multifamily financing transaction volume in the last two years.
“We’re extremely excited to bring Brandon’s best-in-class execution to our team, but beyond that, he will be a meaningtful part of our growth strategy,” said Jeff Erxleben, executive vice president/regional managing director. “By combining forces with our investment sales experts in the southwest, we expect Brandon to help us create the dominant multifamily platform in the region.”
For the last two years, Harrington worked for JLL as managing director within its Capital Markets group. Previously, he was managing director at Walker & Dunlop, and has worked for Cohen Financial.
“I’m very happy to join NorthMarq to bring additional energy and leadership to the company’s growth in Phoenix and across the Southwest,” said Harrington. “NorthMarq has a great debt platform in place, and I’m excited to bring our deep knowledge of the multifamily capital markets to help grow their market share.”
Harrington joins NorthMarq’s Phoenix office and its four additional debt and equity professionals, along with the investment sales team.
In business since 1960, NorthMarq has grown to more than 600 employees through more than 20 acquisitions, a $61 billion loan servicing portfolio and access to hundreds of capital sources.
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PHOENIX, ARIZONA (January 29, 2020) – The Phoenix office of NorthMarq announces the promotion of Griffin Martin to managing director. In his new role, Martin will lead the office and manage the daily debt/equity operations of the Phoenix office along with managing director James DuMars to provide a complete range of financing to the entire Southwestern region and nation through its unmatched network of lending partners.
“James and I share similar core values including ‘taking care of the customer’ and ‘thinking long term.’ Consequently, I’m excited to partner with James as co-managing director of the Arizona office,” said Martin.
“Griffin has an unrelenting drive for achieving exceptional results and taking care of the customer. These exceptional traits coupled with his leadership skills make him an ideal fit to help me co-lead the Arizona office,” said DuMars.
Martin has been in the commercial real estate industry for more than 15 years. He joined NorthMarq in 2015 as a vice president and was promoted to the position of senior producer in 2018. Martin has cultivated a wealth of experience in NorthMarq’s direct agency lending platforms assisting clients with financing from both Freddie Mac and Fannie Mae. In addition to his multifamily finance experience, Griffin also helps clients access capital sources for manufactured housing, self-storage, office, retail and hospitality.
Martin also has extensive experience in arranging bridge financing and construction financing. He has worked closely with clients seeking to access permanent loans from NorthMarq’s wide array of life insurance companies.
Martin is a graduate from the WP Carey School of Business at Arizona State University (Summa Cum Laude) with a degree in Finance. He holds an active Real Estate license in the State of Arizona and is a current or past member of the Urban Land Institute (ULI), National Association of Industrial and Office Properties (NAIOP), International Council of Shopping Centers (ICSC), and Asian American Hotel Owners Association (AAHOA). In his spare time Martin volunteers as a youth basketball coach at the Scottsdale YMCA.
PHOENIX, ARIZONA (January 15, 2020) – Bryan Mummaw recently joined NorthMarq’s Phoenix-based regional office in the role of senior vice president. At NorthMarq, he will assist in the origination of debt and equity for owners of commercial and multifamily real estate. His experience in both financing and investment sales will benefit clients throughout the entire transaction process.
“I’m excited to join NorthMarq because of their entrepreneurial spirit, their wide array of capital products offered to clients, and synergies with the investment sales and servicing platforms,” said Mummaw.
“Bryan is a rising star in the industry and we are very excited to have him join our team,” said James DuMars, senior vice president/managing director of NorthMarq’s Phoenix office.
Mummaw previously served as a director for Berkadia’s mortgage banking group. In this role, he was primarily responsible for sourcing debt and equity for private capital clients. Between 2017 through 2019, Bryan was part of the Scottsdale Berkadia team that originated more than $1.9 billion in real estate transactions.
Before joining the mortgage origination team at Berkadia, Mummaw served as an associate director for Berkadia’s investment sales group and its predecessor company, Hendricks and Partners. In this role, Mummaw was directly involved with private capital markets and advising clients on multifamily assets. His strong track record and holistic approach allowed Mummaw to effectively sell more than $100 million in multifamily assets for private capital clients.
Prior to Berkadia, Mummaw was director of operations for Fenix Private Capital Group, a boutique real estate firm specializing in the acquisition, rehabilitation and stabilization of distressed multifamily assets and notes.
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It isn’t just temperatures in the Phoenix metro that are scorching; the multifamily rental market is hot as well. And vigorous demand is coming from both renters and investors.
Investors are snapping up apartment properties and paying hefty prices. In the first half of 2019, buyers spent $3.72 billion on 94 Phoenix-area apartments, a 41.8 percent jump from the first half of 2018. Sales in the $50 million and greater range accelerated the most.
What are the driving factors behind strong demand?
Phoenix is the fastest-growing city in the U.S., according
to recently released data from the U.S. Census Bureau.
Phoenix saw an increase of 25,288 new residents between 2017 and 2018, topping
all other U.S. cities. One reason for that growth: Phoenix remains more affordable than many other large
U.S. metros. Many
people are flocking to the Valley from high-cost, high-tech cities like Los
Angeles and San Diego. And Phoenix boasts a thriving job market including a fast-growing,
high-paying tech sector.
Other booming industries include bioscience/healthcare and financial services. In fact, the Phoenix metro led the U.S. for new jobs created from May 2018 to May 2019 with 66,500 non-farm jobs, representing 3.2 percent job growth, according to a new U.S. Bureau of Labor Statistics report. Another 60,000 new jobs are forecast in 2019.
Robust net migration and job production are fueling the increased demand for new housing in Phoenix. This has led to a multifamily development boom. Developers delivered nearly 2,000 new units in the first quarter of 2019, well ahead of the 2018 pace, and another approximately 10,500 units are in the pipeline.
Despite new construction, Phoenix’s rents remain among the fastest-growing in the U.S. The metro ranked in the top two for the past several years for apartment rent growth. The average rent was $1,105 in the first quarter 2019, up 9.5 percent year over year. Phoenix is forecasted to be a top contender for U.S. rent growth again in 2019. The market also boasts a healthy 94.7 percent occupancy rate.
Meanwhile, Phoenix single-family home prices are expected to hit record highs in 2019 as home appreciation continues to climb.
New capital floods the apartment market
Historically, investors from California have pursued Phoenix apartment assets. But now there is a surge in new large investors from Colorado, Texas, Seattle and Portland. There is significantly more capital in the Phoenix-area market than multifamily properties to acquire, and most deals have upwards of 10-12 offers.
Another factorfueling strong transaction activity is the capital markets. The 10-year Treasury yield over the last 90 days has fallen dramatically, meaning financing for apartments is approximately 100 basis points lower than a year ago. Some of the largest players in the market are both buying and selling assets, even though pricing has increased significantly. This is because the debt they can obtain on new acquisitions is markedly cheaper.
The median price of Phoenix apartments pushed higher to start the year. In the first quarter, it was $136,700 per unit, a 15 percent jump from 2018. The average cap rate compressed by 5 percent and for some newer properties, it is as low as 4.5 percent.
New product emerging on the outskirts
Over the past five years, most new multifamily development has been infill
projects in East Valley, Scottsdale, Chandler, Tempe and downtown and midtown
Phoenix. However, a new emerging product type is low-density “Single-Family
Rental Communities” with 4,400 units stabilized, in lease-up or under
construction, and another 2,900 units in the pipeline.
These “lock-and-leave” units are being developed on the city’s peripheral in communities like Goodyear, Gilbert, Buckeye and Peoria, which historically, have seen little new construction. Land is less expensive on the outskirts than urban infill markets and single-level development costs are cheaper.
While urban infill continues, costs continue to rise. Single-Family Rental Communities represent an attractive property type that feels more like a community, with a backyard and no one living above or below. Accordingly, they are drawing strong rents. The two largest renter profiles for this new product are downsizing baby boomers and the more experience-driven millennials.
Baby boomers can live in a home similar to what they are accustomed to without the maintenance headaches and having to tap into their retirement savings for a big down payment. Meanwhile, millennials like the flexibility of a lease, yet want the comfort of a home rather than a high-rise.
What does the future look like?
The Phoenix
multifamily market expects to continue to boast strong performance in 2019 and
2020. Experts anticipate continued rapid
rent growth, healthy absorption, strong development activity and an extended
run of low vacancy rates. The apartment investment market got off to a quick
start to 2019, which has paved the way for what will likely be another dynamic
year.
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James DuMars in our Phoenix office celebrates 25 years with the company this week! He enjoys traveling and spending time with his family, and he’s known for his ability to recall the details of a deal — even ones closed years ago. Thanks for being part of the team, James!
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CoStar recently announced its 2018 Power Broker Awards, celebrating the top CRE firms and brokers in the United States. NorthMarq’s Shane Shafer, managing director of NorthMarq’s Los Angeles office and Taylor Snoddy, managing director of NorthMarq’s Dallas office were recognized as Top Sales Broker in their markets. NorthMarq’s Phoenix and Dallas offices each earned a place in the ranks of Top Sales Firms in their markets.
Shafer and Snoddy were recognized for achieving high levels of sales transaction volume in their regions. The Top Sales Broker award distinguishes individuals based on the CoStar market in which the individual is located and is calculated using pricing information from closed sales transactions contained in CoStar’s COMPS database.
The Phoenix and Dallas offices were listed due to their high levels of sales transaction volume in 2018. The Top Sales Firm award is bestowed upon recipients based on the CoStar market in which the company is located and is calculated using pricing information from closed sales transactions contained in CoStar’s COMPS database.
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NorthMarq Multifamily announced today that Chris Michl has joined its national manufactured housing team, which is based in Phoenix, Arizona.
In his new role at NorthMarq, Michl will use his business expertise to market manufactured housing communities and identify buyers and sellers of the asset class. He will also work to expand the team’s presence outside of its primary focus in the southwest.
Michl arrives at NorthMarq after five year in staffing/recruiting companies, where he facilitated staffing needs by identifying and recruiting talent. His experience includes developing strategic partnerships, assessing business requirements and analyzing client satisfaction.
“Chris is a great addition to our manufactured housing team,” said Trevor Koskovich, president – NorthMarq Multifamily. “With his diverse sales experience, he brings a great new perspective to our clients and our business.”
Michl graduated from the University of Iowa with a Bachelors in Business Management and is originally from the Chicago area.
Report highlights:
Conditions in the Phoenix multifamily market strengthened during the third quarter. Vacancy tightened and rents spiked. The investment market responded to the favorable fundamentals with an uptick in sales activity.Report highlights:
The Tucson apartment market improved during the third quarter with vacancy dipping and rents posting strong gains. The market is being supported by an accelerating pace of employment growth.Commercial Executive Magazine interviewed Bill Hahn and Trevor Koskovich of NorthMarq Multifamily on the recent sale of Urban 188 Apartments. The 188-unit multifamily property, located at 1601 West Camelback Road in Phoenix, Arizona, sold this month for $17 million. The NorthMarq Multifamily team of Bill Hahn, Trevor Koskovich and Jesse Hudson represented both the seller and the buyer in this transaction.
Q: Location was a major component in this deal. What other factors played into the success of this transaction?
A: The fact that the property had just undergone a complete renovation, with all new HVAC units, kitchen appliances and flooring, among other systems. Also, easy light rail access encourages a young, upwardly-mobile tenant base.
Q: Urban 188 was a turn-key asset, does this type of property appeal to most of your investors?
A: Actually, no. Most buyers active today are looking for properties where they can add value by making physical improvements or management improvements, thereby increasing revenue. This particular buyer purchased Urban 188 because he believed in the organic rent growth that would come from the location and other factors mentioned in #1 above.
Hudson also noted that the property’s proximity to the light rail will likely improve property values as it encourages redevelopment and gentrification of the surrounding areas.
Urban 188 apartments, built in 1970, comprises 188-units situated on 22.30 acres. The community is a blend of 57 percent studios units, 42 percent one-bedroom, units and 1 percent two-bedroom units. The property, located on the south side Camelback Road east of 17th Avenue, is near manufacturing and warehousing employment along Interstate 17. Urban 188 is also located along the Metro light rail line with a station located just two blocks west at the intersection of 19th Avenue and Camelback Road, providing easy access to downtown Phoenix, Tempe and Mesa. The immediate neighborhood surrounding Urban 188 comprises a mixture of single-family homes, multifamily projects, and commercial developments.
Urban 1601 Property LLC, of Phoenix, Arizona, was the buyer. 1601 W. Camelback Rd. LLC, of Las Vegas, Nevada, was the seller.
The 188-unit Urban 188 apartments is located at 1601 West Camelback Road in Phoenix, Arizona
Trevor Koskovich, leader of our investment sales business, is among the experts that will share insights into the current state of the market and where it’s going in the next 12 months at the InterFace Phoenix Multifamily conference on September 11.
NorthMarq Multiifamily’s Bill Hahn and Trevor Koskovich were recently recognized as Broker Team of the Month in the July/August issue of Commercial Executive Magazine. The team’s submission was prepared and presented by Willmeng Construction. Partners since 2007, multifamily professionals Bill Hahn and Trevor Koskovich have been riding the highs and lows of the Valley’s commercial real estate market for more than a decade. “I remember meeting Trevor for the first time over a lunch in Old Town Scottsdale,” Hahn recalls. “We hit it off and we had a plan.”
Starting Points
Early in 2018, Hahn and Koskovich moved their entire 10-team member operation from Colliers to NorthMarq Capital. The firm is an industry leader in commercial real estate finance with annual production volume of $13 billion and a loan-servicing portfolio of $52 billion on behalf of more than 50 institutional investors and the government-sponsored entities (GSE’s). “We realized this would be a good alliance,” says Koskovich, President of newly created NorthMarq Multifamily Investment Sales group. “We each had what the other wanted.”
Background
Hahn, Executive Vice President of NorthMarq Multifamily Investment Sales, and Koskovich, came to the commercial real estate industry on vastly different paths. “I entered the business with Marcus & Millichap in the early 1980s,” says Hahn. Koskovich, on the other hand, entered the arena with an entrepreneurial energy, having sold two companies he started. “I believed commercial real estate would be a great industry for me,” he says. “I interviewed every firm in town to fi nd out which would be the best fit.” Sperry Van Ness proved the right launching pad for Koskovich. “I knew that working with Bill was ultimately going to offer me the most opportunity and room to grow,” he says. At 27, Koskovich had little idea of the obstacles looming on the horizon. “The market was ready to fall off a cliff. I recall the best advice I gave him,” says Hahn. “He told me, stop talking to owners of commercial real estate and start talking with the lenders,” says Koskovich.
Read what led the Multifamily team to NorthMarq and how they plan on paving the road going forward!
These days, it is more than just the temps that are white hot in Phoenix. Competition among both buyers and lenders is heating up in the Phoenix apartment market.
Transaction volume is down from levels set in 2016, but demand is stronger than ever with a record high level of buyers and capital in the market. The common complaint is that there are more buyers than there are for-sale properties.
It is not unusual to have eight to 12 qualified bidders on a deal – twice the number that existed a few years ago. NorthMarq recently brokered a 200-unit, Class C, value-add sale in Phoenix that drew 12 offers with five going into a best and final. At the end, there were four very credit-worthy bidders who all had offers in within $100,000. The financing available for the acquisition was a 10-year fixed rate of 4.40 percent, 75 percent LTV and an initial five-year, interest only.
The main driver behind this appetite for apartments is that buyers see a good growth story. Phoenix has come a long way since its housing bubble burst more than a decade ago. The metro is enjoying strong employment and job growth with more than 50,000 plus jobs being created and 80,000-plus new residents moving to the area annually.
Read why the Phoenix market will remain incredibly competitive for both lenders and investors here.
Bill Hahn, Trevor Koskovich and Jesse Hudson of NorthMarq Multifamily in Phoenix and Cynthia Meister of NorthMarq Multifamily in Albuquerque negotiated the sale of Lincoln Heights Apartments in Albuquerque, New Mexico. The transaction was featured in GlobeSt.com’s Middle Market Digest. The 184-unit multifamily property sold for an undisclosed purchase price. The NorthMarq Multifamily team represented the buyer and seller in the transaction. Read the full transaction announcement.
NorthMarq Capital’s James DuMars recently celebrated his office’s decade-long relationship with Phoenix area developer/redeveloper and philanthropist, Michael Pollack. After more than 20 years (and 100+ transactions) of working together, DuMars noted “Michael is a very loyal man, you can’t take a relationship like that for granted. We have a wonderful business relationship built on honesty and respect.” Read the full story here.
James DuMars addressed hot-topic items in the retail sector in a recent National Real Estate Investor article titled “Lenders Still Willing to Finance Retail, but Be Prepared for Extra Security.”
The article covers how it’s not entirely business as usual in a retail sector that’s been hit by a double whammy of rising e-commerce sales and shifting consumer shopping patterns. Check out the full story here.
James DuMars authored a featured article in Commercial Executive Magazine titled “Let the Good Times Roll.” In the story, DuMars highlights the annual CREF conference, as well as hitting on high-interest topics including: debt funds gearing up to fund construction/JV Equity/mezzanine loans, securitization, CMBS trends, life companies and agencies. See the full story here.
