PacifiCap Sells 735-Unit Albuquerque Portfolio

Arioso. Image courtesy of NorthMarq

Multifamily investment company Laguna Point Properties has expanded its presence in the Albuquerque, N.M., market with the purchase of a three-property multifamily portfolio from PacifiCap Properties Group. The price paid for the 735-unit portfolio was not released.

The transaction marked the seventh acquisition in the market by Laguna Point. Garrett Labar, investment manager at Laguna Point, said in a prepared statement the three workforce housing properties are well located in the Northeast quadrant of the city and benefit from significant drive-by traffic along Montgomery Boulevard, one of the most heavily traveled roadways in the market.

NorthMarq Teams

NorthMarq’s Albuquerque and Phoenix offices negotiated the sale and financing for the portfolio. The Albuquerque office led by Vice President Cynthia Meister, along with NorthMarq’s Phoenix investment sales team of President Trevor Koskovich, Executive Vice President Bill Hahn and Senior Vice President Jesse Hudson brokered the sale of the Jefferson Crossing, Aztec Village and Arioso multifamily communities. The Phoenix debt/equity team of Managing Director Brandon Harrington, Senior Vice Presidents Bryan Mummaw and Vice President Tyler Woodward financed each acquisition for the buyer with Freddie Mac loans.

Harrington said in prepared remarks the assets were a great fit for the Freddie Mac Target Affordable program. He said the ARM execution allows the borrower to have the desired prepayment flexibility while maximizing leverage and paying interest only.

Meister noted the Albuquerque multifamily market has been strong with improving vacancy rates and rents increasing yearly. She said the buyers were motivated by the lower price-per-unit, well-located opportunity and attractive financing terms.

Properties Detailed

Jefferson Crossing

Located at 4401 Montgomery Blvd. NE, the Class B property was built in 1972 and has 239 units. PacifiCap acquired the asset for approximately $9.3 million in July 2002 from Richard Fink, according to Yardi Matrix data. Situated on nearly 9 acres, the property has a fitness center, basketball court, swimming pool, playground and 500 parking spaces. The units range in size from 715 square feet for a studio to 1,406 square feet for a three-bedroom with an average size of 1,001 square feet, Yardi Matrix reported. Fireplaces are available in three-bedroom and townhouse units.

Aztec Village

Located at 4321 Montgomery Blvd. NE, the Class B property has 228 units and was built in 1991. PacifiCap acquired the asset for an estimated $25.3 million in July 2003 from Harold J. Ward III, according to Yardi Matrix data. The sale price was unconfirmed but is believed to be reasonably representative of the transaction. Situated on 16.8 acres, the property has a fitness center, clubhouse, basketball court, tennis court, playground, swimming pool and 500 parking spaces. The units range in size from 500 square feet for a studio to 1,300 square feet for a three-bedroom with an average of 976 square feet, Yardi Matrix reported. Washers and dryers are available in select units.

Arioso

Located at 7303 Montgomery Blvd., the Class B property has 268 units and was built in 1985. PacifiCap acquired the property in December 2004 for an estimated $14.7 million from SNK Development, according to Yardi Matrix data. The sale price was unconfirmed but is believed to be reasonably representative of the transaction. Situated on nearly 8 acres, the property has a fitness center, clubhouse, playground, two swimming pools and a spa, laundry facilities and about 300 parking spaces. Some covered parking is available. The asset has fireplaces in select units. The apartments range in size from 661 square feet for a studio to 1,396 square feet for a three-bedroom with an average of 949 square feet. Fireplaces are available in select units.

Earlier Laguna Point Deals

In January, Laguna Point sold Sanctuary on Broadway, a 240-unit community in Tempe, Ariz., to Capital Allocation Partners for $42.8 million, according to Yardi Matrix. Laguna Properties purchased Point on Flamingo, a 189-unit community near the University of Nevada Las Vegas, for $21.7 million from Financial Attunement, according to an October listing of top multifamily deals in Las Vegas in September.