Western Wealth Capital Pays $54M for Phoenix Asset

The Mod Apartments, formerly known as Tides at North Phoenix

Western Wealth Capital has acquired Tides at North Phoenix, a 316-unit community in Phoenix, and renamed it as The Mod Apartments. Tides Equities sold the Class B, value-add asset for $54 million after purchasing it for $33.5 million in early 2019, according to Yardi Matrix. Berkadia assisted the seller in the current deal and provided the buyer with $40 million in acquisition financing through Freddie Mac. The seven-year loan features a 75 percent loan-to-value ratio and two years of interest-only payments followed by a 30-year amortization schedule.

Situated on more than 10 acres at 2222 W. Beardsley Road, the community comprises 18 residential buildings completed in 1985. The unit mix features studio and one- to three-bedroom floorplans averaging 643 square feet. Amenities include two swimming pools, a clubhouse, a tennis court and a playground. Berkadia Senior Director Dan Cheyne said in a prepared statement that WWC plans to further upgrade the property through unit interior and community amenity improvements.

The Mod is some 17 miles north of downtown Phoenix in an opportunity zone, just east of Interstate 17 and north of Arizona State Route 101. Deer Valley Park and HonorHealth Deer Valley Medical Center are both within a 1-mile radius.

Berkadia Senior Managing Directors Ric Holway and Mark Forrester worked together with Cheyne in completing the sale on behalf of Tides. The brokerage trio also assisted the seller in the $34.7 million disposition of a 138-unit Phoenix community in October. Managing Director Clay Akiwenzie arranged the acquisition financing for the latest transaction.