Moderne Apartments, BCDC Secure $56M in Equity for Phoenix Projects

Both communities are expected to come online in 2024.

Rendering of The Governor. Image courtesy of Berkadia

Moderne Apartments, in a joint venture with BCDC, will be developing two multifamily communities in Phoenix, totaling 358 units. Berkadia arranged both the joint venture partner—BCDC—and the equity partner, a Texas-based investment manager, who contributed a combined $55.5 million in equity. Pacific Western Bank provided the debt.

Construction commenced on the first project, The Governor, at the beginning of August. The second project’s construction is scheduled to begin mid-September.

The 176-unit The Governor will be located at 1717 E. McDowell Road. The project will feature studio, one- and two-bedroom units with an average size of 739 square feet. Common-area amenities will include a fitness center, controlled access and 234 parking spots, as well as 2,400 square feet of retail, according to Yardi Matrix.

The benefit of major street exposure

The development site, which used to be the personal residence of the state’s first governor, is situated in the Miracle Mile neighborhood, close to Interstate 10 and Banner Health, one of the area’s major employers, 2.6 miles from downtown Phoenix and 3.3 miles from Phoenix Sky Harbor Airport.

The Texas-based equity provider contributed $18.9 million and Pacific Western Bank originated a $40.6 million senior loan. The project is slated for completion in June 2024.

Rendering of Moderne Arrowhead. Image courtesy of Berkadia

Moderne Arrowhead will be located 15431 N. 67th Ave., in Glendale, Ariz. The project will include 182 units, encompassing studio, one- and two-bedroom units. The two-story 12-building project will also feature one-bedroom and one-bath carriage house units. Common-area amenities will include a clubhouse, a swimming pool, covered parking spots and an on-site rental office, according to Yardi Matrix.

The project will be located at the intersection of West Greenway Road and North 67th Avenue, close to retail options such as a Walmart and Lowe’s, and 6.9 miles from Glendale’s historic downtown.

The equity provider contributed $18.10 million and Pacific Western Bank provided a $38.3 million loan. The project is expected to be completed in April 2024.

A Berkadia JV Equity & Structured Capital team formed of Managing Directors Cody Kirkpatrick and Noam Franklin, as well as Senior Managing Director Chinmay Bhatt, worked on behalf of the developers.

Yesterday, Hatteras Sky and Bridge Investment Group announced the groundbreaking of a 389-unit mixed-use project in Phoenix. Saiya will be a 23-story building with 12,550 square feet of retail space. According to a recent Yardi Matrix report, 2,772 units were delivered in metro Phoenix this year through April, with an additional 38,650 apartments under construction.

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