PHOENIX—Auction.com, LLC has been retained as the exclusive loan sale advisor for the senior participation interest, including servicing rights, for two 2007 vintage notes collateralized by two class A multifamily properties in Gilbert.
Constructed in 2007 and with a June 2014 occupancy of 94%, the two garden-style luxury apartment complexes total 624 units and offer market-leading finishes and amenities.
The subject notes, which mature in April 2017, are fixed-rate, interest-only loans at a 5.62 percent coupon. They are cross-collateralized/cross-defaulted and thus part of a single offering. With a total unpaid principal balance of $45,000,000, the senior participation is currently held by a government sponsored enterprise. The junior interest, which is not part of this offering, is held by an affiliate of the borrower, an owner/developer of class A multifamily properties with 3,550 units currently under management and an annual revenue of $25 million.
Regarding the value of the underlying collateral, RCAnalytics indicates significant liquidity in the past year in the Southeastern Phoenix MSA. Multifamily apartment complexes built after 1995 have traded at a notably tight 5 to 5.5 percent cap rate range.
Indicative bids are due no later than October 23 and the final auction is scheduled for November 6. To learn more, visit www.auction.com/arizonamfnotes.
GlobeSt.com will update this story as more information becomes available.
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