Modern Apartments and BCDC Obtain $56 Million in Equity for Phoenix Projects – Multifamily Real Estate News

Return of the Governor. Image courtesy of Berkadia

Modern Apartmentsin joint venture with BCDCwill develop two multi-family communities in Phoenix, totaling 358 units. Berkadia both planned the joint venture partnership and secured $55.5 million in construction funding, initiated by a Texas-based investment manager. Western Bank of the Pacific also provided funding.

Construction of the first project, The Governor, began in early August. Construction of the second project is expected to begin in mid-September.

The 176 units of The Governor will be located at 1717 E. McDowell Road. The project will include studio, one and two bedroom units averaging 739 square feet. Common facilities will include a fitness center, controlled access and 234 parking spaces, as well as 2,400 square feet of retail space, according to Yardi Matrix.

The advantage of large street exposure

The development site, which was once the personal residence of the state’s first governor, is located in the Miracle Mile neighborhood near Interstate 10 and Banner Health, one of the area’s largest employers. 2.6 miles from downtown Phoenix and 3.3 miles from Phoenix. Sky Harbor Airport.

The Texas-based equity provider contributed $18.9 million and Pacific Western Bank issued a senior loan of $40.6 million. The project is expected to be completed in June 2024.

Rendering of Modern Arrowhead. Image courtesy of Berkadia

Modern Arrowhead will be located at 15431 N. 67th Ave., in Glendale, Arizona. The project will consist of 182 units, including studios, one-bedroom and two-bedroom units. The 12 two-story building project will also include one-bedroom, one-bathroom carriage house units. Common facilities will include a clubhouse, swimming pool, covered parking spaces and an on-site rental office, according to Yardi Matrix.

The project will be located at the intersection of West Greenway Road and North 67th Avenue, near retail options such as a Walmart and Lowe’s, and 6.9 miles from historic downtown Glendale.

The funder provided $18.10 million and Pacific Western Bank provided a loan of $38.3 million. The project is expected to be completed in April 2024.

A Berkadia JV Equity & Structured Capital team consisting of managing directors Cody Kirkpatrick and Noam Franklin, as well as senior managing director Chinmay Bhatt, worked on behalf of the developers.

Yesterday, Hatteras Sky and Bridge Investment Group announced the grand opening of a 389-unit mixed-use project in Phoenix. Saiya will be a 23-story building with 12,550 square feet of retail space. According to a recent Yardi Matrix report, 2,772 units have been delivered in Metro Phoenix this year through April, with an additional 38,650 apartments under construction.


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