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10/12/22
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Cala Paradise Valley Apartments, a 168-unit multifamily property in Phoenix, was acquired by a private real estate investment partnership. The deal was financed with a $29.3 mil loan arranged by Gantry.
The garden-style complex is located on Paradise Village Parkway S, near major retailers including Super Target, Sprouts, Trader Joe’s, Safeway, Costco, and T.J. Maxx. The property is also within walking distance to Paradise Valley Mall, which is undergoing a significant reposition.
Originally constructed in 1984, Cala at Paradise Valley has recently undergone a partial renovation of unit interiors. The borrower intends to renovate the balance of the unit interiors while also upgrading the exterior and common area amenities.
Gantry’s Adam Parker and Chad Metzger arranged the seven-year fixed-rate Freddie Mac loan. It features a sub 5% interest rate and an upfront interest-only period that transitions to a 35-year amortization for the remainder of the loan.
According to Gantry’s Adam Parker, “There is no doubt that rate volatility, inflation, and macroeconomic forces have put new pressures on the multifamily investment marketplace this year, but for experienced sponsorship, solid loan options remain available, particularly where a strong repositioning can add new value. Rate locks are the key to getting transactions done in an ever-changing marketplace. This Sponsor was able to take advantage of Freddie Mac’s index lock program at the signing of the loan application which allowed us to process the loan for 48 days without worrying about the increasing interest rate environment.”
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