Phoenix—Deco Communities has landed three-year construction financing for a 110-unit condo project in Phoenix’s Midtown neighborhood. HFF arranged the $18.3 million in non-recourse financing via a commercial bank. The 60-percent loan-to-cost financing puts the total development price in the $30.5 million ballpark. HFF also arranged joint venture equity capital for the project.
Known as Edison Midtown, the condo will sit at the intersection of North Central Avenue and East Monterrey Way. Deco bought the 1.3-acre site back in 2014. It is the first major residential development in the submarket since 2008, and enjoys a location within walking distance of the Central Ave & Encanto Boulevard light rail station.
The seven-story building was designed by Harley Ellis Devereaux. Amenities include a swimming pool and spa, as well as a 2,000-square-foot fitness center.
HFF also arranged non-recourse construction financing and joint venture equity for both Deco’s $38 million Envy development in downtown Scottsdale and the company’s Inspire on Earll condo development in Old Town Scottsdale.
California investor finds value in Kansas City
Kansas City, Mo.—A 384-unit community has traded hands in Kansas City. L5 Investments, a privately held multifamily investor based in El Dorado Hills, Calif., bought Whispering Lake Apartments from Baltimore’s MMA Capital Management. Terms of the transaction were not disclosed, though L5 Investments took on an $11.8 million Freddie Mac loan in connection with the sale, according to Yardi Matrix data. Marcus & Millichap represented MMA Capital Management in the sale.
“We procured 138 registered bidders, received 18 initial offers and 11 best and final offers, four of which contained immediate nonrefundable deposits,” said David Gaines, vice president of investments at Marcus & Millichap. “We closed at a 5.43 percent cap rate based on the trailing 12 months’ net operating income.”
L5 Investments has budgeted $1.7 million for a rehab program that will upgrade the leasing center, business center, fitness center and model unit. It will also allow for added amenity areas, improved landscaping and interior upgrades.
The 1989-built asset sits 10 miles southeast of downtown Kansas City.