Institutional Property Advisors, a division of Marcus & Millichap (NYSE: MMI), announced the $63.5 million refinancing of Stonebridge at Paradise Valley, a 384-unit multifamily property consisting of 26 buildings at 4315 E. Thunderbird Road in Phoenix, Arizona. The financing was arranged by IPA’s Brian Eisendrath, executive managing director, and Cameron Chalfant, senior managing director. CVG Properties, a private investment firm based in Scottsdale, Arizona, was the borrower in the deal.
“CVG has performed flawlessly on their execution since they purchased the property in 2014,” said Eisendrath. “With the success of their business plan and the tremendous amount of rent growth in Phoenix, we were able to procure a cash-out refinance that returned over $35 million of equity back to the partnership.”
“We plan to invest over $4 million into the property in the common area amenities, building exteriors and interior unit renovations. The refinance proceeds will fund the property improvements and return more than 260 percent of investors’ original capital,” said a representative of CVG. “The property offers significant long-term rent growth while the planned redevelopment of the over 100-acre Paradise Valley mall nearby into a high-end mixed-use destination with retail, dining, luxury apartment units, and Class-A office spaces offers even further potential.”
The 10-year fixed-rate loan has an interest rate of 3.11 percent and was arranged through IPA’s Strategic Alliance with M&T Realty Capital Corporation. The two-story property was built in 1985 and is in an irreplaceable north Phoenix location near green spaces such as parks, golf courses and hiking trails, and has easy access to downtown Phoenix and the surrounding suburbs. The property also includes amenities such as a 24-hour fitness center, resort-style swimming pools, controlled access, a spa and hot tub, and a host of others. Additionally, each apartment unit comes with a washer and dryer, new appliances and carpeting, as well as access to a BBQ and outdoor areas.
About Institutional Property Advisors (IPA)
Institutional Property Advisors (IPA) is a division of Marcus & Millichap (NYSE: MMI), a leading commercial real estate services firm in North America. IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, and acclaimed research offer customized solutions for the acquisition, disposition and financing of institutional properties and portfolios. For more information, please visit www.institutionalpropertyadvisors.com
About CVG Properties
CVG Properties is a private investment firm located in Scottsdale, Arizona. We partner with qualified private investors to buy and operate multifamily real estate with the goals of cash flow, appreciation, and preservation of investor principal.