Berkadia announced today the recent financing and sale of FHR Portfolio, a group of eight multifamily properties located across Tucson, Arizona. Senior Vice President Clay Akiwenzie of the San Francisco office originated the $49.8 million loan through Berkadia’s Freddie Mac Program. Senior Partner Art Wadlund and Associate Clint Wadlund of the Tucson office negotiated the sale of the properties, which sold for $66.7 million on May 15, 2015. The sale price reflects a per-unit price of $42,329. The seller was Family Housing Resources of Tucson, Arizona, and the buyer was MC Companies of Scottsdale, Ariz.
“We’ve worked closely with both clients in the past and our knowledge of their needs within in the context of the overall market was key in finding a good fit on both sides of the deal,” Art Wadlund said. “FHR sought to free up capital for investment, and was offering an excellent collection of well-maintained, strong-performing assets. MC Companies looked to expand their local holdings by acquiring operationally healthy communities with the potential for moderate renovations that would generate additional rental-rate upside.”
MC Companies used the financing to acquire the portfolio, which consists of 1,576 units in total. The seven-year, floating-rate loan features a 2.32 percent interest rate, two years interest only, 75 percent loan-to-value ratio and 30-year amortization schedule.
The portfolio offers a range of studio, one- and two-bedroom floor plans options. Select properties include unit amenities such as cable access, balconies and patios, and fully equipped kitchens, as well as community amenities such as a gym, clubhouse, swimming pool and laundry facilities.
“This portfolio showcases the expertise and collaboration our mortgage banking and investment sales teams bring to the table,” Akiwenzie said. “The investment sales team’s deep relationship with the buyer and seller coupled with the mortgage banking team’s extensive experience with Freddie Mac allowed our team to complete the transaction seamlessly and transparently.”
Top employers in the Tucson area include Davis-Monthan Air Force Base, University of Arizona and Raytheon. Metro-wide apartment vacancy in Tucson fell 50 basis points year over year to 8 percent at the end of the first quarter of this year. Operators advanced rents 1.2 percent on average in the first quarter to $666 per month as rental demand jumped.