PHOENIX—Neal Churney, senior vice president, and Adam Finkel, vice president, of Johnson Capital's Phoenix office, have arranged $21.7 million in refinance loans for the owner of two multifamily properties located in Phoenix.
The two complexes contain a total of 440 units. The larger property, The Ridge at Sun Valley, contains 264 units and was completed in 2004 on 15.03 acres located at 801 N. 59th Avenue. The project consists of twenty-two two-story buildings and a one-story clubhouse with units comprised of 176 two-bedroom two-baths and 88 three-bedroom two-baths. The units are individually metered for electricity and contain full-size washer/dryers, patio/balconies, and full air-conditioning. Amenities at Ridge at Sun Valley include two pools with spas, an onsite clubhouse containing a leasing/management office, business center, theater room, and fitness center. The loan amount for this property was $12,375,000.
The other property, Bayside Apartments, contains 176 units and was completed in 1999 on 7.81 acres located at 20245 N. 32nd Drive. The property has a swimming pool and spa along with a standalone office and fitness center and the units have washers and dryers. The loan amount for this property was for $9,337,000.
The borrower is a Mexico-based investor that has been a long-time client of Churney's. The borrower acquired the properties in 2010 and the new loan is a cash-out refinance. The refinance will provide the client additional money to invest in another project currently under development in California.
The non-recourse twelve-year loan was funded by an East Coast bank with a loan-to-value ratio of 75%. It has a 30-year amortization schedule and an interest rate that starts in the high 3% range.
Commenting on the loan, Churney says, "The client was looking for a non-recourse loan with the lowest rate available rate at the highest leverage possible. We were able to meet all the client's requirements and help facilitate the closing to meet the cash-out requirement.”
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
