PHOENIX and SAN FRANCISCO – January 15, 2020 – Berkadia announced today the sale and financing for two multifamily properties, Sunwood Apartments and Cedar Meadows Apartments, both in Peoria, Arizona. Senior Managing Directors Ric Holway and Mark Forrester and Senior Director Dan Cheyne of Berkadia’s Phoenix office completed the combined $47 million in sales on behalf of the sellers.
“Sunwood and Cedar Meadows were a dual transaction that included the parties selling assets to each other,” said Holway. “Sunwood was the second leg of this dual transaction where the seller of Cedar Meadows purchased Sunwood with 1031 exchange funds with a long-term cash flow business plan. Cedar Meadows was a true repositioning opportunity that fit the business model for Western Wealth Capital, who will transform the community through exterior and interior renovations.”
Sun Wood Apartments sold for $31 million, and Berkadia represented the seller Western Wealth Capital, based in Vancouver, Canada. Managing Director Lucas Donahue of Berkadia’s Phoenix office secured a $20.15 million fixed rate non-recourse acquisition loan. The buyer was Los Angeles-based Prado Revocable Living Trust, and the sale closed on December 11.
Cedar Meadows Apartments sold for $16.2 million to Western Wealth Capital, and Berkadia represented the seller Prado Revocable Living Trust. Managing Director Clay Akiwenzie of Berkadia’s San Francisco office secured an $11.9 million acquisition loan through Thorofare Capital. The three-year floating rate bridge loan represented a 65 percent loan-to-cost advance on a going-in sub-four percent debt yield. Both Western Wealth Capital and Thorofare Capital performed to the original contract terms with no change to terms or conditions despite significant degradation to property operations during escrow. The deal closed on December 4.
“We were proud to play our part in making this a clean execution,” said Akiwenzie. “Ric Holway and Dan Cheyne did a tremendous job putting these two parties together.”
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