CBRE Secures $39.7 Million in Financing for Purchase of Two Multifamily Properties in Phoenix
11 Nov 2020
Multifamily portfolio consists of 305 total units
Phoenix – CBRE’s Capital Markets’ Debt & Structured Finance team announced it arranged a $39.7 million loan for the purchase of two multifamily properties in Phoenix, The Vicinity and Ascent 1829.
The Vicinity is located at 6131 N. 16th Street and was originally built in 1975. The complex is comprised of 10 multi-story buildings with a total of 125 units. Amenities include pool, clubhouse, barbecue area, laundry facilities and fitness center.
Originally built in 1980, Ascent 1829 is located at 1829 E. Morten Avenue and is comprised of 16 two-story buildings with a total of 180 units. Amenities include pool, barbecue and picnic area, cabanas, laundry facilities, fitness center, dog park and outdoor firepit.
The communities are within two miles of each other and are both adjacent to AZ-51, a major freeway that connects to the rest of the Phoenix metropolitan area. The assets are within 9 miles of both Downtown Phoenix and Phoenix Sky Harbor International Airport.
“The acquisition of The Vicinity and Ascent 1829 is a value-add play, whereby units will be upgraded, and value will be created by doing substantial unit renovations,” said Summers. “The buyer plans to spend approximately $18,000 per door on unrenovated units to further improve the quality of the assets and generate superior value.”
Birrell added, “Due to the two properties being in proximity to each other and in the same submarket, the borrower plans to create efficiencies by consolidating management and maintenance.”
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.