Northmarq completes the sale and financing of Villas Esperanza in Albuquerque, New Mexico

ALBUQUERQUE, NEW MEXICO (August 23, 2022) --- Northmarq’s Investment Sales team of Cynthia Meister, Trevor Koskovich, Bill Hahn, and Jesse Hudson brokered the sale of Villas Esperanza, a 188-unit affordable, project-based Section 8 community located at 3901 Lafayette Drive in Albuquerque, New Mexico. Northmarq represented the seller, Copper Street Capital from Aspen, Colorado. The Northmarq Debt & Equity team of Griffin Martin, Brandon Harrington, Bryan Mummaw and Tyler Woodard provided financing for the buyer, Los Angeles-based Element Property Company, through its relationship with Freddie Mac.

“We were pleased to assist Element on their acquisition financing with another great property in Albuquerque,” explained Martin. “The financing options were competitive and Northmarq’s Freddie Mac program offered the best terms and structure for the client.”

Built in 1972, Villas Esperanza includes 24, two-story buildings on 10.5 acres in Albuquerque’s Northeast submarket. The property is in close proximity to The University of New Mexico and Kirtland Air Base, putting Villas Esperanza in one of the city’s prime rental corridors. 

Villas Esperanza includes one-, two-, three-, and four-bedroom units, with either one or two bathrooms, ranging in size from 602 sq. ft. to 1,128 sq. ft., Cooper Street Capital invested significant capital into interior renovations at the property, including new appliances, flooring, countertops, light fixtures and paint. The gated community has on-site laundry facilities, children’s playground and BBQ grills and picnic area. 

One hundred percent of the Villa Esperanza units are set aside for residents at 60 percent or less of the area median income (AMI) with the project LURA expiring in 2037. In addition, 40 percent of the units, a total of 75, are project-based Section 8 with additional rent restrictions as specified in the Housing Assistance Payment (HAP) Contract that expires in 2039. 

Albuquerque’s strengthening economy and elevated renter demand drove down vacancy rates and pushed rents higher during the first three months of 2022. The first quarter ended with overall vacancy rate of 2.9 percent for the market and overall asking rents rising by two percent. For more information read Northmarq’s Q12022 Research Report.