Phoenix, Ariz. – Breckenridge Apartments, located at 17625 North 7th Street in Phoenix, Arizona sold this month for $32,800,000.
The NorthMarq Multifamily team of Bill Hahn, Trevor Koskovich, and Jesse Hudson represented both the seller and the buyer in this transaction. The buyer was Phoenix-based 3rd Ave Investments, LLC.
“Breckenridge Apartments is a charming apartment community in a rapidly emerging neighborhood,” says Zev Hendeles, principal of 3rd Ave Investments. “When you factor in the value-add potential, strong and diverse tenancy, prime location and attractive loan structure, it’s easy to see that Breckenridge Apartments is a truly irreplaceable investment opportunity at a price well below replacement cost.”
“Breckenridge is a unique opportunity to reposition the property in today’s market” says Koskovich. “The asset previously was a fractured condominium and the buyer purchased the property under single ownership as the HOA was recently collapsed.”
Financing for the acquisition included a $27,550,000 loan from NXT Capital, which was arranged by NorthMarq Capital’s James DuMars, managing director, and Griffin Martin, vice president.
“Given the asset’s formidable upside and the sponsor’s impressive track record there was a large contingent of lenders pursuing this opportunity. Consequently, the terms were incredibly competitive,” says DuMars. “Working alongside our investment sales team provided enhanced communication and an extremely smooth execution.”
North Park Management LLC and North Park Condominium LLC of Dallas were the sellers.
The 308-unit Breckenridge apartment community, built in 1984, comprises 19 percent one-bedroom units, 48 percent two-bedroom units, and 33 percent three-bedroom units. The property, located on the east side of 7th Street north of Bell Road, is situated in the Deer Valley Corridor, which has experienced substantial job growth since 2015. Major employers include USAA, Discover Financial, American Express, and Honeywell Aerospace. In addition, Breckenridge is located between three of Phoenix’s major transit arteries—Loop 101, I-17, and AZ-51—providing tenants with an easy commute throughout the Valley.
NorthMarq Multifamily offers commercial real estate investors in select markets a personalized approach to buying and selling multifamily and manufactured housing properties by combining local market knowledge with the strength of a national platform to develop creative solutions for real estate investment opportunities. From a growing platform, investment sales professionals collaborate with NorthMarq Capital’s debt and equity experts nationwide to provide a full range of capital markets services.
NorthMarq Capital, the largest privately held commercial real estate financial intermediary in the U.S., provides debt, equity and commercial loan servicing through over 300 mortgage banking professionals in regional offices coast-to-coast and services a loan portfolio of more than $53 billion. For more information please visit www.northmarq.com.
About 3rd Ave Investments, 3rd Ave Investments is a real estate investment and management firm specializing in the acquisition and re-positioning of Arizona multifamily assets through a value-add private equity fund structure. Founded in 2015 by Zev Hendeles, 3rd Ave Investments has acquired more than 3,000 apartments with an aggregate market value of more than $315 million.
3rd Ave Investments targets poorly managed, undervalued and off-market investments, where opportunities exist to create value with an active management approach. 3rd Ave Investments is directly involved in all aspects of the acquisition, re-positioning and/or redevelopment process with a hands-on approach.