Berkadia today announced the sale of and financing secured for Villas de Azul, a 301-unit garden-style multifamily property in Phoenix. Senior Managing Directors Ric Holway and Mark Forrester and Senior Director Dan Cheyne of Berkadia’s Phoenix office completed the $33 million sale on behalf of the seller, North Carolina-based Sterling Real Estate Partners. The buyer was Vancouver-based Western Wealth Capital, and the deal closed on September 1.
Managing Director Clay Akiwenzie, of Berkadia’s San Francisco office, secured $26.4 million in financing for the acquisition of the property. The 10-year Freddie Mac loan features an 80 percent loan-to-purchase ratio, a five-year interest-only period and a 30-year amortization.
“Villas de Azul presented a great opportunity for Western Wealth Capital to growth their portfolio within Metro Phoenix with this acquisition,” said Holway. “The community was recently stabilized offering some the largest floor plans in the submarket with significant rental upside and value-add potential.”
“Berkadia was proud to place the financing on Villas de Azul with Freddie Mac,” added Akiwenzie. “It was the first 80 percent loan-to-purchase we have originated in several years and our teams’ first post-COVID acquisition financing. The healthy positive leverage, generous interest-only terms and extremely low floating rate index with a pay rate below three percent made this deal truly remarkable.”
Located at 2627 North 45th Ave., Villas Azul feature a low-density site layout on over 17 acres with spacious one-, two-bedroom apartments and three-bedroom townhouse units. Community amenities include a swimming pool, a basketball court, a soccer field, a playground and laundry facilities.