Berkadia has arranged the disposition of Tides on Rail, a 488-unit apartment property in Phoenix. RN Las Palmaritas, LLC acquired the garden-style community from Tides Equities, for $60 million. The brokerage also secured $42 million in acquisition financing for the buyer. According to Yardi Matrix, the seller purchased the asset in mid-2019, for $39.8 million.
Berkadia’s Phoenix office team arranging the sale on behalf of both parties included Senior Managing Directors Ric Holway and Mark Forrester, as well as Senior Director Dan Cheyne. Managing Director Clay Akiwenzie of the San Francisco office sourced the Freddie Mac acquisition financing. The 10-year debt has five years of interest-only payments and a fixed interest rate of less than 3 percent.
The asset is situated in an Opportunity Zone at 1905 W. Las Palmaritas Drive, 11 miles north of downtown Phoenix. The transit-oriented community is a short walk from a Metro Light Rail line stop and less than a mile from Interstate 17. A grocery-anchored retail center with various dining options is adjacent to the site.
Dating back to 1979, Tides on Rail has a unit mix of one-, two- and three-bedroom floorplans across 27 buildings. Some apartments have been recently renovated and offer hardwood floors, stainless steel appliances and quartz countertops. Amenities include four swimming pools, five laundry facilities, a sport court and two dog parks.
This month, Tides Equities teamed up with Berkadia for another sale and financing in the city. The 316-unit Tides at North Phoenix—located some 9 miles from Tides on Rail—changed hands for $54 million.