Although Albuquerque’s multifamily market continues to underperform against the national average, due to slow population growth and limited inventory, last year marked a cycle high in transactions, with almost $400 million in sales. The momentum seems to be continuing this year as more than $240 million in assets had traded as of September. After a slow start into the year, the second quarter attracted more capital to Albuquerque’s multifamily market. By the end of September, 22 communities changed hands in the metro, nearly matching the number of sales closed throughout the entirety of 2017.
Heightened sales activity led to a boost in lending, since the majority of transactions were closed via financing under the form of Fannie Mae or Freddie Mac loans with amortization schedules surpassing 10 years. The largest multifamily loan secured in the metro since the beginning of the year amounted to $36.3 million.
The following list highlights the largest multifamily loans secured in Albuquerque since the beginning of the year based on information made available by real estate data provider Yardi Matrix.
10. Indigo Park ($13.3 million)
The $13.3 million Fannie Mae loan that Inco secured for buying Indigo Park features a 12-year amortization schedule and a 4.6 percent interest rate. The originator is CBRE Capital Markets. The 216-unit community is located at 7600 Montgomery Blvd. N. E. and offers one-, two- and three-bedroom apartments that were almost entirely occupied as of September. Residents have access to a fitness center, clubhouse, playground, two swimming pools, spa and a partially covered parking.
9. Cinnamon Tree ($14 million)
Varia acquired the 398-unit community at 7220 Central Ave. S. E. in March from Thompson Michie Communities. The transaction involved Varia securing a $14 million CMBS loan from M & T Bank for the following seven years at a 4 percent interest rate. The originator was Berkadia Commercial Mortgage. The building was completed in 1988 and encompasses studio-, one- and two-bedroom units ranging between 320 and 850 square feet. Amenities include a fitness center, clubhouse, tennis court, volleyball court, basketball court, playground, two swimming pools and two spas. It was 91 percent occupied as of September.
8. Desert Oasis ($14.2 million)
The 512-unit property became subject to a $14.2 million loan in the summer, when MIhail Koulakis acquired it from AMG Realty Group. Arbor Commercial Funding originated Fannie Mae financing which covered more than two thirds of the purchasing price. The 12-year loan features a 5.2 percent fixed interest rate. The community is located at 950 Louisiana Blvd. S. E. in the Uptown submarket and was completed between 1971 and 1979. It includes a mix of studio-, one-, two-, three- and four-bedroom apartments and five pools.
7. Ventana Ranch ($14.4 million)
The partially-affordable community at 10400 Universe Blvd. N. W. became subject to a $14.4 million Fannie Mae loan in June, with Walker & Dunlop as originator. The financing features a 15-year amortization at a 4.6 percent interest rate. Ventana Ranch encompasses 288 one-, two- and three-bedroom units available for an average rent of $900. GSL Properties owns and manages the 2005-built property.
6. Mesa Verde ($15.8 million)
Benefit Street Partners is the originator and lender of a $15.8 million financing for ChadNic’s newly acquired Mesa Verde community. The owner used the loan to buy the property from Donald Meagher in February and is expected to pay it off by March 2020. Located at 4610 Eubank Blvd. N. E., the 243-unit Mesa Verde was completed in 1984 near the Sandia Mountains. It provides access to an array of amenities which include a fitness center, business center, tennis court, playground, two swimming pools and a spa.
5. The Enclave ($19.5 million)
DiNapoli Capital Partners became the owner of the The Enclave in April following a portfolio transaction which also included Allegro at Tanoan Apartments. The purchasing price was covered partially by a $19.5 million Fannie Mae loan which CBRE Capital Markets originated the same month. The loan matures in June 2028 and features a 3.5 fixed rate. The luxury community is located at 9500 Osuna Road N. E. and was completed in 1995. Amenities include a fitness center, business center, clubhouse, tennis and basketball courts, swimming pool and spa.
4. Mission Hill ($21.1 million)
Mission Hill is currently subject to a $21.1 million Fannie Mae loan secured in June. Berkadia Commercial Mortgage originated the financing, which features a 15-year amortization schedule at an interest rate of 4.5 percent. The 448-unit community is located at 10000 Menaul Blvd. N. E. and is part of Sonoma Imperial’s portfolio. It offers a mix of one- and two-bedroom floor plans ranging from 575 to 930 square feet.
3. Wellington Place ($21.6 million)
The $21.6 million loan that Berkadia Commercial Mortgage secured for Communidad Realty Partners in May was used for acquiring Wellington Place, a 280-unit community located at 3131 Adams St. N. E. The Fannie Mae financing features a 12-year amortization schedule at a 4.8 percent interest rate. The loan covers most of the purchasing price paid to Thompson Michie Communities for the asset the latter has been owning since 2003. Wellington Place was completed in 1982 and featured a 91 percent occupancy in September.
2. Allegro at Tanoan ($26.7 million)
The 250-unit Allegro at Tanoan is subject to a $26.7 million Fannie Mae loan that CBRE Capital markets originated in April. The 10-year financing was used by DiNapoli to purchase the community from Bassham Properties in a transaction which also included another Albuquerque property, The Enclave. The luxury community was completed in 1997 at 6601 Tennyson St. N. E. and includes one-, two- and three-bedroom apartments equipped with fireplaces and featuring vaulted ceilings and views of Sandia Mountains. In September, Allegro at Tanoan was almost completely occupied.
1. Arterra ($36.3 million)
Arterra is a 194-unit luxury property located at 8300 Wyoming Blvd. N. E. Northland Investment Corp. acquired it in June from Abacus Capital Group in a transaction partially covered by a $36.3 million Freddie Mac loan. CBRE Capital Markets originated the financing, which features an amortization schedule of 12 years. The community encompasses one-, two- and three-bedroom apartments which can be rented for a monthly average of $1,200.
Images courtesy of Yardi Matrix