DENVER, COLORADO (June 23, 2022) – Gregory Benjamin, senior vice president/senior director, and David Bolt, senior analyst of Northmarq’s Denver debt/equity office, coordinated with Ben Katon, senior vice president of Finance & Acquisitions at Weidner Investment Services, Inc., to secure the $65 million refinance of Skyline Lofts. The class A, 7-floor/332-unit multifamily property (built in 2009) is located at 600 North 4th Street in Phoenix, Arizona. The transaction was structured with a 10-year term on a 30-year amortization schedule. Northmarq secured the permanent-fixed loan for Weidner Investment Services, Inc. through its more than 30-year relationship with a major life insurance company.
“After submitting the loan request to upwards of 25 correspondent, non-correspondent (direct) and agency lenders, the ‘winning’ life company lender presented the most compelling combination of reasonable “coverage/debt yield” driven loan dollars with clearly the most aggressive spread over the pricing index of the 10-year treasury, the latter being of very high importance to our “long term hold” oriented borrower,” said Benjamin. “The borrower was able to “rate lock” just at the cusp of market wide spreads and the Index both beginning to widen significantly. In fact, the lender, while not having changed their mortgage loan spreads at all in the prior four months in a very stable market, needed to increase their spread twice within the ten days prior to rate lock due to the yield in their primary alternative investment option of corporate bonds increasing. Loan metrics of minimum debt service coverage and debt yield were still met, so loan dollars were not impacted.“
Skyline Lofts is superbly located on the north side of Fillmore Street, representing the southern edge of the Roosevelt neighborhood (which is renowned as a major art hub in Phoenix) and on the northern edge of the Arizona State University “graduate student” campus, University of Arizona College of Medicine, general office, medical office, and retail. The neighborhood is experiencing a robust burst of multifamily development and investment, as is the greater Phoenix MSA. This continues the momentum in the local multifamily investment market carried over from a record-setting 2021 into the first quarter of this year. Sales velocity in the first three months of 2022 was ahead of the pace established during the same period in 2021, and dollar volume was up by approximately 40 percent, according to Northmarq’s Phoenix Q1 Multifamily Report.
The community is filled with revitalized parks, unique shops and local businesses, high-quality restaurants and Craftsman-style architecture. Whether commuting to other parts of Phoenix and beyond, or traveling for shopping and entertainment, residents have easy access to numerous main channels of transportation, such as Van Buren/Central Avenue, 3rd Street/Washington and Roosevelt/Central Avenue.
Community amenities include: Superb on-site management and maintenance, first floor retail, on-site central parking garage, elevator(s), business center, clubhouse, lounge, fitness center, spa, and pool, Apartment amenities include: large average unit sizes, 10′ ceilings, high-speed internet access, Wi-Fi, in-unit washer/dryer, air conditioning, heating, ceiling fans, cable ready, security system, tub/shower, dishwasher, disposal, ice maker, pantry, eat-in kitchen, microwave, range and refrigerator. The property is conveniently located within 0.2 miles of Arizona State University, 0.4 miles of University of Arizona and 3.2 miles of Phoenix College. There are three shopping centers within 1.2 miles. For residents seeking a break from the urban lifestyle, five parks/recreational opportunities are within 1.5 miles, including Civic Space Park, Children’s Museum of Phoenix and the Japanese Friendship Garden.