Phoenix Portfolio Owners Score $186M Refinancing

JLL arranged the Freddie Mac loans on behalf of a partnership between Wealhouse Capital Management and Western Wealth Capital.
Greentree Place. Image courtesy of JLL

A partnership between Wealhouse Capital Management and Western Wealth Capital has secured $185.6 million in refinancing for a five-asset, 1,439-unit multifamily portfolio in metropolitan Phoenix. JLL secured the series of loans through Freddie Mac, which will be serviced by Freddie Mac Optigo lender Jones Lang LaSalle Multifamily LLC.

READ ALSO: Greystone Scores $86M Refi for San Francisco-Area Community

Managing Director Josh Simon and Senior Director Brad Miner led the JLL Capital Markets team that represented the borrower in arranging the 7-year, floating-rate non-recourse loans. The communities in the portfolio were built between 1981 and 1986 and include:

  • Carlyle at South Mountain (552 units across two phases): 5151 E. Guadalupe Road in Phoenix
  • Greentree Place (246 units): 250 S. Elizabeth Way in Chandler, Ariz.
  • Autumn Creek (360 units): 1320 N. McQueen Road in Chandler, Ariz.
  • Spring Meadow (271 units): 10030 N. 43rd Ave. in Glendale, Ariz.

Two of the properties, Carlyle Apartments and Carlyle Townhomes, comprise a single community known as Carlyle at South Mountain, which Western Wealth Capital acquired from FPA Multifamily for $90 million in February 2018. Located southeast of downtown and just east of the South Mountain Park and Preserve, the community consists of 360 apartment units and 90 townhomes.

Western Wealth Capital picked up Greentree Place from PEM Real Estate Group for $35 million later in 2018, according to Yardi Matrix data. The Canadian investment firm added Spring Meadow, near downtown Glendale, to its portfolio in 2017 for $22.3 million as part of a two-property portfolio deal.

Phoenix still going strong

The garden-style properties in the newly refinanced portfolio feature pools, clubhouses, gyms, basketball courts, green areas and other amenities. In a statement, Miner noted that the resiliency of the Phoenix multifamily market during the current pandemic enabled the team to score the sizeable financing deal.

Western Wealth Capital, which bills itself as the second-largest multifamily landlord in the Greater Phoenix area, specializes in acquiring, repositioning and selling properties with a typical investment horizon of 3 to 5 years. The company has sold 31 properties out of a 75-asset platform as of December 2019. Last month, it acquired Desert Willow Apartments, a 280-unit community in Phoenix, from a local investor for $20.7 million, according to public records.

The multifamily heavyweight is not the only company able to score financing in the area. Greenlight Communities just received a $22.9 million construction loan to develop Cabana on 99th, a 286-unit community in Glendale.