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Phoenix & Southwest  + Phoenix  + Finance  | 

Sponsor Buys Out Investors But Retains Control of Stratford

A recent financing transaction illustrates the depth of NorthMarq’s capital stack for its clients, said Brandon Harrington, NorthMarq managing director. NorthMarq’s Phoenix office recently completed the recapitalization of the Stratford Apartments, 17625 N. 7th St. in Phoenix.

The debt and equity team of Harrington, Bryan Mummaw and Tyler Woodard arranged a $43.3 million Freddie Mac senior loan and structured an $8 million preferred equity investment. The investment sales team of Trevor Koskovich, Bill Hahn and Jesse Hudson advised the principal on the process. The initial and successor ownership entities are all affiliates of 3rd Avenue Investments of Phoenix. 3rd Avenue Investments has been an active buyer and seller of multifamily projects in metropolitan Phoenix for seven years.

“By bringing in preferred equity and a new Freddie Mac loan, the sponsor was able to buy out current investors while still retaining control of the property for a long-term hold,” says Harrington.

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About Lisa Brown

Lisa Brown has decades of experience in corporate communications and marketing management with organizations including Coldwell Banker Residential, Grubb & Ellis, Marcus & Millichap, NAIOP, SIOR and ALM. In those positions, she worked in conjunction with chief executive officers and chief marketing officers to create corporate messaging, cohesive branding standards, strategic marketing plans and thought pieces. Brown is a frequent speaker at industry events and an editing adjunct professor for an online course. She has a master’s degree in mass communications from San Jose State University.