This completes an exciting past week at ABI, with three significant closings (Southern Ridge Apartments and Scottsdale Haciendas Condominiums & Townhomes being the other two). Total transaction volume for the three closings was $29,935,000, with 320 total units and a price per unit of approximately $93,550.

Shnitzer tells GlobeSt.com regarding Waterford, “This is one of the first Phoenix multifamily transactions, post the downturn (2009-2012), to have now transacted with the previously originated Freddie Mac first loan assumed by the buyer and also have had originated a new second or supplemental loan by the buyer. The first loan had an original principal balance of $8.475 million and the new second or supplemental loan added an additional $2 million in debt to the property. Many Phoenix multifamily properties are funded through agency loans (Fannie Mae and Freddie Mac). This is important as when a property appreciates, it becomes viable to request a second or supplemental loan from the existing agency lender and the potentially large prepayment penalty to remove the first doesn't need to be paid-off/removed in order to sell the property, the buyer can or will assume the existing first and place a new second, if the additional leverage is desired.”

Bax adds, “The 2nd or supplemental loan--looks like two loans, but they're both from the same source, Freddie Mac. Both loans that now encumber Wateford on Tatum Apartments are through Freddie Mac and are co-termious in maturity date, with a maturity date in early 2023. The selling entity purchased Waterford on Tatum Apartments, formally known as Tatum Gardens Apartments, in 2012 from AIMCO and completely repositioned the property through capital renovations. Waterford on Tatum Apartments was originally built in 1985 and was renovated by the seller in 2013. The bulk of the renovation dollars were spent on the common areas. A small percentage of the interiors were also renovated to prove out rental increases, so plausible buyer assumptions could be made for renovating the balance of the interiors,”

“We were really impressed with the quality of construction and renovations at Waterford on Tatum Apartments and the buyer recognized all the hard work that the selling entity completed to get this property into immaculate condition. The Buyer plans to complete further renovations to the balance of the non-renovated interiors. Waterford on Tatum Apartments was a unique opportunity to purchase a low density, majority two bedroom/two bathroom apartment community, with over 1,000-square-foot unit averages and washer/dryer in each apartment home. The additional icing on the cake was that it also had a great low interest rate agency loan that the buyer assumed,” says Shnitzer.

Waterford on Tatum Apartment community is located at 15425 North Tatum Boulevard in Phoenix, Arizona. The property is in the heart of one of the most desirable areas in the entire valley with great access to the I-51 and Loop-101 freeways. Some of the major employers in the immediate area include GoDaddy, JDA Software Group, Veri Fone, Inc., Discount Tire, First National Financial Services, Choice Hotels, Skill Soft and St. Jude Medical Center. The location provides for easy access to major job centers via the surrounding freeways, while also allowing for quick access to many options in all directions for shopping, entertainment, and fine dining.

“It has a Phoenix address,” says Bax. “But the asset is minutes away from Paradise Valley, Scottsdale, Desert Ridge, Kierland, terrific shopping and dining, and the freeways. There is very easy access to the Camelback Corridor and Downtown.”

Waterford on Tatum Apartments was originally constructed 1985 out of wood frame and stucco. The property sits on nearly 6 acres of land, with 8 total buildings and a dedicated leasing center that was recently remodeled. All common areas were completely renovated in 2013 and a portion of the interiors were as well. Waterford is a solid and highly sought after “B” class community, with majority two bedroom / two bathroom floor plans.