Financing of $315.6 million for East Valley Portfolio drives record year for Northmarq’s Phoenix Debt & Equity Team

PHOENIX, Arizona (December 23, 2021) –NorthMarq’s Debt & Equity Team of Brandon Harrington, and Tyler Woodard arranged the financing of a four-property portfolio on behalf of 3rd Avenue Investments, totaling a combined 1,368 units. The properties include Lemon & Pear Tree, Riviera Park, Gilbert Greens, Sahara and Playa Palms, which are located in in Mesa, Chandler and Gilbert, AZ. Acquisition financing was arranged for 3rd Ave., a repeat borrower with the lender, through a national bridge lender, which offered a 3+1+1 structure and future funding.

The portfolio provided a rare opportunity for the investor to acquire extremely well-located assets from an owner who has held them for over 25 years.

“While there was little to no differed maintenance at the assets, the upside to increase income by way of burning off loss to lease and interior renovations was substantial, which made the transactions a perfect fit for a bridge loan execution,” said Managing Director Brandon Harrington. “We always appreciate the opportunity to work with Zev Hendeles and the 3rd Ave team.  With their partnership, we were able close out a record year, completing more than $2 billion in debt/equity closings.”

3rd Avenue Investments is currently one of the largest privately-held multifamily investment and management firms in Phoenix. The purchase gives the firm significant opportunity to expand their footprint in well located east valley submarket, which has continued to see exponential rent and population growth year over year, according to Northmarq’s 3Q Market Insights. The properties also present a strong value-add component allowing the purchaser to increase rents, implement a RUBs program, and update the units to increase revenue.

• Lemon & Pear Tree is located at 1750 S. Alma School Road in Mesa. Built in 1981, the property features 100% two-bed, two-bath floor plans averaging 1,043 square feet. The property is conveniently located within minutes from the US-60 and has an almost combined total of 1,000 square feet of street frontage along S. Alma School Road and W. Isabelle Avenue.

• Riviera Park is located at 125 S. Dobson Road in Chandler. Built in 1983, the property has a majority two-bedroom, two-bath floor plans averaging 727 square feet. Strategically located northeast of the Loop 101, the property is near one of the Chandler’s largest employers, Chandler Regional Medical Center, which currently employs over 2,500 doctors and medical staff. 

• Gilbert Greens is located at 1101 N. Gilbert Road in Gilbert. Built in 1984. The property has both one- and two-bed/two-bath units with floor plans averaging 709 square feet. Gilbert Greens is five minutes from Historic Downtown Gilbert which has been regentrified over the last five years and features some of the most popular restaurants and shops in the East Valley.

• Sahara & Playa Palms is located at 2300 W San Angelo Street in Gilbert. Built in 1984 the property has one, two, and three-bed/two-bath floor plans averaging 848 square feet. With over 840 units, Sahara & Playa Palms is located off of S. Country Club Drive just south of the US-60. The property features four sparkling swimming pools, two tennis courts, sauna, fitness center, and children’s playground.    

For more information on the Phoenix market, see Northmarq’s 3Q market insights, which noted the tightening vacancy that ticked lower for the fifth consecutive quarter and continued sales velocity, which closely tracking levels recorded in the second quarter.