Thank you for sharing!

Your article was successfully shared with the contacts you provided.

[IMGCAP(1)]WASHINGTON, DC-Perseus Realty Capital LLC is positioning its real estate financial services platform to close deals outside of its traditional stronghold in the Mid-Atlantic. The firm just completed a trio of deals in Phoenix for local developer 3 Street Financial, in which it helped the firm raise $36 million in debt and equity for three value add multifamily acquisitions. As another illustration of its growing footprint, Perseus Realty Capital also recently secured $11 million in mezzanine financing on behalf of the Nichols Partnership, a Denver area developer now building a 503-unit, 41-story residential condominium tower in the city’s downtown.

[IMGCAP(2)]The most recent of the three Phoenix multifamily deals is 3 Street’s $15.9 million acquisition of Quail Point, a 264-unit, 12-building apartment complex. Perseus Realty Capital raised $5.2 million in JV equity capital for this deal, according to Tom Howland, who along with Moiz Doriwala, managed the transaction. Last year this complex traded for $15 million.

The other two acquisitions were of the Veranda, a 156-unit garden style community on West Thomas Road and Windtree Village Apartments, a 103-unit, eight-building apartment complex. Somera Capital Management in Santa Barbara was the equity provider for all three deals. Prudential Mortgage Capital Co. provided the debt for the Veranda and Windtree transactions. Freddie Mac provided the debt for Quail Point.

Howland tells GlobeSt.com that the lenders like 3 Street’s approach to the market: all three properties are value-add plays in good in-fill locations in Phoenix. The plan is to upgrade and rehab the buildings and attract tenants by specifically adding features that appeal to Hispanic renters, he says. These include such touches as tile instead of carpet, big kitchens and two-to-three bedroom units, as opposed to a smaller number of bedrooms, in order to accommodate larger families. The developer, he says, is counting on “a word of mouth marketing campaign that will fill up the buildings with the right tenants that will stay longer because they like the community.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.