Multifamily - Debt


NorthMarq represents Christopher Todd Communities in sale of five innovative rental communities, completing third largest sale in Arizona

PHOENIX, ARIZONA (March 12, 2020) – NorthMarq represented Christopher Todd Communities in the sale of five of their innovative luxury single-family home rental communities in the Phoenix metro area to Inland Real Estate Acquisitions, LLC. In addition, NorthMarq arranged the acquisition financing for the portfolio for Inland.

NorthMarq’s Investment Sales team led by Trevor Koskovich, Jesse Hudson, and Bill Hahn brokered the sale and represented the buyer and seller.  According to Trevor Koskovich, President of NorthMarq Investment Sales, this exciting new product type is in high demand, evidenced by the extraordinary number of qualified offers received on the portfolio.  “Choosing the ultimate buyer from the pool of interested buyers was not easy. Institutional buyers were drawn to this product type because of its appeal to a wide range of high-income tenants, including young families and empty-nesters.” Acquisition financing for the portfolio was arranged by James DuMars and Griffin Martin of NorthMarq’s Phoenix office.

Three properties closed escrow today and two more properties are in escrow and will be closing when each respective community is stabilized at 90% occupancy.  The sales price for all five is $235,500,000 resulting in an average price per unit of approximately $250,000, and an average of $279.23 per square foot – the highest in the west valley. 

“Not only is it the third largest multifamily sale, by dollar volume, in Arizona, it is the largest horizontal single-family sale, by dollar volume, in the nation,” said Todd Wood, CEO of Christopher Todd Communities. 

Christopher Todd Communities On Greenway in Surprise, Christopher Todd Communities At Country Place in Tolleson and Christopher Todd Communities On Camelback in Litchfield Park were all included in today’s closing. Christopher Todd Communities At Marley Park in Surprise and Christopher Todd Communities At Stadium in Phoenix, which is the largest at 313-homes, are pending and should close by the end of April and this summer respectively.  A total of 943 homes were included in the deal.  

These communities were wholly-owned by Christopher Todd Communities, LLC and were the first to be developed as the company embarked on a path to disrupt the multi-family industry with smart gated communities comprised of pet-friendly one- and two-bedroom single-family smart homes with private backyards and resort-style lifestyle amenities. 

Inland Real Estate Acquisitions is part of Oak Brook, Ill-based Inland Group of Real Estate Companies which started more than a half century ago. Inland owns and manages 77.4 million square feet of real estate in 49 states. As part of the sale, each community will retain the Christopher Todd Communities name and brand elements. 

– Christopher Todd Communities On Greenway $31,140,000 – $261/SqFt
– Christopher Todd Communities At Country Place $36,960,000 – $265/SqFt
– Christopher Todd Communities On Camelback $42,762,000 – $277/SqFt
– Christopher Todd Communities At Marley Park $41,693,000 – $270/SqFt
– Christopher Todd Communities At Stadium $82,945,000 – $301/SqFt

“Over the last three years, we have created a dynamic combination of home designs, lifestyle, technology and resident engagement that are intricately tied to the Christopher Todd Communities brand. That brand commands faster lease ups, 25-30% higher rent rates, and 50% higher resident retention, which all lead to a strong investor value. There is financial significance in what we have created, and Inland understands that.  They are a very savvy investor with in-house expertise commensurate with their $2 billion worth of real estate purchases over the last 18 months alone,” said Todd Wood.

Christopher Todd Communities has been a multi-family disrupter with its innovative rental concept and is on the fast track for national expansion. The company recently announced an exclusive strategic partnership with national home builder, Taylor Morrison to bring these gated rental communities to new markets outside of Arizona. To date, plans include creating additional Christopher Todd Communities in Dallas, Texas, Charlotte, N.C., and Orlando, Fla.

As a capital markets leader, NorthMarq offers commercial real estate investors access to experts in debt, equity, investment sales, and loan servicing to protect and add value to their assets. For capital sources, we offer partnership and financial acumen that support long- and short-term investment goals. Our culture of integrity and innovation is evident in our 60-year history, annual transaction volume of more than $14 billion, loan servicing portfolio of more than $61 billion and the multi-year tenure of our nearly 600 people.