NorthMarq arranges $12,500,000 sale of the Montecito Apartments while financing the acquisition with an attractive loan

PHOENIX, ARIZONA (August 18, 2020) – The 92-uinit Montecito Apartments, located near 14th Street and Mountain View Road, sold on August 14 for $12,500,000. NorthMarq’s Phoenix Investment Sales team led by Ryan Boyle, Trevor Koskovich, Jesse Hudson, and Bill Hahn, brokered the sale and represented both buyer and seller in this transaction.  

Montecito Apts LLC, an entity formed by Scottsdale-based investor, Mark Petz, was the buyer.  

“Montecito was an excellent opportunity to acquire a high performing asset in North Central Phoenix,” said Boyle, senior associate at NorthMarq. “The previous owner’s extensive renovations have proven out significant rent increases. I look forward to watching the new owner continue the interior renovations, as well as create value through additional common area amenities.”  

Financing for the acquisition included a $9,880,000 Freddie Mac loan which was arranged by NorthMarq’s Griffin Martin, managing director. “A direct agency loan through NorthMarq offered the borrower optimal terms of 79 percent loan-to-value, a sub 3 percent interest rate and 5-years interest only,” said Martin.

The seller was Southern California-based Westgrove Partners, a private real estate investment company focused on multifamily acquisitions in the Western U.S. Led by its principals Christian Meier and Taylor Fijan, this was the second asset Westgrove has sold in the Phoenix market this year. “Montecito was a great asset for us, as we were able to exceed the goals of our business plan in a very short period of time,” said Fijan. “Westgrove is actively seeking new opportunities both value-add driven and stabilized in the Phoenix market and beyond. While we’re seeing opportunities in many of our other target markets, Phoenix will remain a focus as we’re quite bullish on the Valley long term.” 

Westgrove’s principals have collectively contributed to the acquisition and management of over 25,000 units since 2008. By utilizing its principals' backgrounds, Westgrove Partners implements an institutional level approach to asset evaluation, due diligence, investor relations and ongoing asset and construction management.  More information can be found at their website (www.westgrovepartners.com).

The 92-unit Montecito apartment community, built in 1983, comprises 100 percent two-bedroom units. The property, located on the south side of Mountain View Road and west of 14th Street, is situated in the dynamic North Central Phoenix submarket. Montecito’s proximity to the Deer Valley submarket provides easy access to major employers such as American Express, Wells Fargo, Bull HN Information Systems, Cox Communications, TriWest Healthcare, PetSmart headquarters and Karsten Manufacturing. Additional nearby employers and job centers include Banner Thunderbird Medical Center, Arrowhead Hospital, Metrocenter regional mall, Biltmore Fashion Park, Arizona State University West Campus, and Glendale Community College. 

The immediate neighborhood surrounding Montecito is comprised of a mixture of single-family homes, multifamily projects, and commercial developments. Nearby Hospitals include HonorHealth John C. Lincoln Medical Center located one mile southwest of the property. The Magnet status hospital containing 266 beds was one of the first Level I Trauma Centers in the Valley. The HonorHealth system employs more than 3,400 expert physicians, 11,600 dedicated employees, and more than 3,000 care volunteers working in partnership. Montecito is surrounded by mountain reserves providing tenants many hiking trail options and outdoor activities. Nearby recreational parks include Sunnyslope Park, Norton Park, North Mountain Park, and Mountain View Peak all located within two miles of the property.