TODAY’S DEALS: Transwestern Arranges Sale of Phoenix Property for $20.8M
- Jul 03, 2012
Phoenix—In a transaction that confirms the ongoing recovery of the Phoenix multifamily housing market, Transwestern has announced the sale of the Park Meadow apartment community. San Diego-based ColRich purchased the property for $20,800,000.
With 225 units totaling more than 202,000 square feet, Park Meadow is a gated community in the highly desirable Maricopa County town of Gilbert in the southeast section of Greater Phoenix.
“This is the seventh transaction ColRich has completed in the Phoenix area and the second sale that we’ve made to this very active company this year,” said Transwestern vice president Jack Hannum. “It clearly demonstrates that ColRich has confidence in the region’s future demand for multifamily housing.”
Park Meadow was built in two phases, with about 70 percent of its units completed in 1986 and the remainder in 1996. Located on East Guadalupe Road, it has excellent proximity to retail, transportation and schools. The complex also offers its residents three swimming pools and a fitness center. ColRich plans to upgrade the unit interiors over the coming years, and will increase rents as demand for such housing continues to rise in step with local employment and population growth.
Recognized by several national publications as one of the best and safest places to live in the United States, fast-growing Gilbert has evolved into an educated and relatively affluent community. It supports well-paying jobs in life sciences, health services, clean and renewable energy, and advanced business services.
“Both buyers and seller contributed to one of the smoothest sales we’ve ever conducted,” added Hannum. “Danny Gabriel, president of ColRich Investments, and his associate Steve Butler of ColRich, are true professionals who know how to effectively close transactions. They acquired a well-located stabilized community that’s not only close to excellent employment opportunities, but will produce increases in net rental income as the economic recovery continues.”
Transwestern is participating in similar growth in other regions. It recently hired nearly 20 new employees for its office in the East San Francisco Bay Area, opened new offices in St. Louis, Seattle and New York City, and is pursuing additional expansion in downtown San Francisco, San Jose and Palo Alto. With 31 offices across the U.S., Transwestern oversees a leasing and property management portfolio of 258 million square feet nationally, and has established an international alliance with BNP Paribas Real Estate.
Cohen Financial advises on $12.45M, 80 Percent LTV financing
Spokane, Wash.–Cohen Financial has secured a $12.45 million loan for the 200 unit garden style Bentley Apartments located at 1715 Hayford Road in Spokane, Wash. The property was built in two phases with phase II completed in 2011.
Peter Norrie, managing director of Cohen Financial’s Portland office, arranged the seven-year fixed-rate loan, with the first two years interest only, thereafter a 30 year amortization schedule. The loan was 80 percent of value and the lender is a GSE. The borrower is a well-established regional multifamily developer and property manager.
“The first phase of this project was completed four years before the second and already had a permanent loan,” said Norrie. “Phase II was on a construction loan. We did not want to do a new loan on just phase II and instead made a loan on the entire 200 units and avoid staggered maturities on each phase. We were able to make this happen for our client and substantially reduce their debt service going forward.”