IPA Capital Markets, a division of Marcus & Millichap, specializing in capital markets services for major private and institutional clients, has arranged $60.92 million in acquisition financing for three multifamily assets, one in Phoenix and two in Glendale, Arizona. Brian Eisendrath, IPA executive managing director and Cameron Chalfant, IPA senior managing director, worked on behalf of the borrower, Tides Equities to place 65 percent loan-to-value, 10-year floating-rate acquisition financing with five years of interest only.
“Despite recent caution, the capital markets have demonstrated their willingness to lend, especially in strong, well-established markets like Phoenix,” said Eisendrath. “As we move further into the lending environment of 2023, we’ll take the Fed’s smaller rate hike in December as a positive sign that financing will be available for investors going forward.”
Built in 1985 and 1986, the properties are:
- The Perry Apartments, 14 buildings, 146 units, Glendale
- Red Sage, 14 buildings, 156 units, Phoenix
- Serena Park Apartments, 10 buildings, 141 units, Glendale
“This deal provided a unique opportunity to acquire three assets in familiar locations at a steep discount to market pricing, especially given the strong condition of properties that the seller had spent millions on to cure deferred maintenance,” said Ryan Andrade, co-founder and principal at Tides Equites. “Given their proximity to other properties in the Tides portfolio, the risk of executing the business plan is minimized, and we feel these three properties have a strong chance of out-performing our projections.”