Multifamily - Debt, Sale

Northmarq brokers sale and financing of two value-add multifamily properties in Albuquerque

ALBUQUERQUE, NEW MEXICO (May 31, 2022) — Northmarq’s Investment Sales team of Cynthia Meister, Trevor Koskovich, Bill Hahn, and Jesse Hudson brokered the sale of The Courtyards and The Arbors in Albuquerque. Both properties are located in the Northeast Heights submarket, The Courtyards at 6001 Topke Place NE and The Arbors at 4501 Shepard Road NE. The team represented the seller of both multifamily properties, a Colorado-based private equity real estate company.

“We continue to see buyers looking for value-add multifamily properties in prime Albuquerque submarkets,” said Meister. “Both The Courtyards and The Arbors offered the opportunity to increase revenue and value through strategic in-unit renovations and community upgrades that create ancillary income opportunities and the opportunity to increase asking rents.” 

The Debt & Equity team of Brandon Harrington, Bryan Mummaw, Brad Burns and Tyler Woodard arranged bridge financing for the two properties for the California-based buyer, a private real estate investment firm dedicated to multifamily acquisitions in the Western U.S.

“Albuquerque is a fast-growing market with institutional capital chasing better yields which resulted in an ultra-competitive capital landscape,” explained Mummaw. “We were able to help the buyer procure a balance sheet execution with sub-200 basis point spread pricing at 65% Loan-to-Cost.”

The Courtyards is a 188,512 -square-foot, 232-unit community with twenty-nine, two-story buildings. Community amenities include two swimming pools, resident fitness and business centers, volleyball court, children’s playground, dog park and three laundry facilities. The property has one-, two-, and three-bedroom units that range in size from 457 to 1,055 square feet.

The Arbors is a 297-unit, 155,072-square-foot garden-style property with six, three-story buildings that include studio, one-, and two-bedroom units ranging in size from 288 to 611 sq. ft. The Arbors community amenities include three swimming pools, resident fitness center, dog park and three laundry facilities.

According to Northmarq’s Research Group, Albuquerque ended 2021 with a near all-time low vacancy rate of 3.0% and a 21.8% year-over-year increase in asking rents, with average asking rent of $1,145. Investment sales in the market were consistently active with sale prices outpacing the rate of rental increases and cap rates compressed, ending the year below 4%. 

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. We combine industry-leading capabilities with an open, flexible structure, enabling our team of seasoned professionals to create innovative solutions for clients. Our solid foundation and entrepreneurial approach have built an annual transaction volume of over $30 billion, and loan servicing of nearly $70 billion.