3rd Ave Investments LLC has acquired the Breckenridge Apartments, a 308-unit apartment community in Phoenix, for $32.8 million. The property was purchased from North Park Management LLC and North Park Condominium LLC.
The NorthMarq Multifamily team of Bill Hahn, Trevor Koskovich and Jesse Hudson facilitated the deal, representing both sides of the transaction.
“The property was a fractured condo and recently the HOA collapsed and it became one homogeneous apartment complex under single ownership,” Koskovich, NorthMarq Multifamily’s president, told MHN. “The buyer purchased the property in a desirable location primed for value-add enhancements.”
The seller purchased the property as an REO sale, acquiring the property as a broken condo and purchasing the remaining condo units.
“He sold the property in today’s marketplace, making a significant profit,” Koskovich added.
Located at 17625 N. 7th St., Breckenridge Apartments was originally built in 1984 and features one-, two- and three-bedroom units. The property offers a fitness center, a clubhouse, a playground, two swimming pools, laundry facilities and covered parking.
The community is situated in the popular Deer Valley submarket, which has a strong employment corridor with major employers including USAA, Discover Financial, American Express and Honeywell Aerospace. The location of the property is also appealing because its centrally located between a trio of major transit arteries—Loop 101, Interstate 17, and AZ-51.
Financing for the acquisition included a $27.6 million loan from NXT Capital. 3rd Ave Investments plans to address all deferred maintenance at the property and renovate the interiors.
“The borrower was seeking a highly reputable and reliable bridge lender that would give credit for the planned upgrades at the property, recognize the upside and offer flexible prepay prior to loan maturity,” James DuMars, NorthMarq Capital’s managing director, told MHN. “NXT was the ideal fit.”
Earlier in December, NorthMarq Capital arranged a $41 million construction loan for Panoptic Development for its 154-unit community in Canoga Park, Calif.
Image courtesy of NorthMarq