SB Real Estate JV pays $56 million for Phoenix Asset – Multifamily Real Estate News

Portola Glendale. Image courtesy of Berkadia

SB Real Estate Partners acquired Obsidian on Ocotillo, a 232-unit multifamily property in Glendale, Arizona, for $56.4 million. The company’s financial partner, a Texas-based family office recruited by Berkadiaprovided $23 million for this purchase.

The buyer also used a $37.3 million Freddie Mac acquisition loan from JLL, according to Yardi Matrix data. The property completed in 1985 was previously traded in 2021, when the current seller, Round 16 Capital Partnersbought it in a $55 million wallet deal.

Renamed Portola Glendale, the 13-building community at 6801 W. Ocotillo Road features one- and two-bedroom units ranging from 659 to 905 square feet. Common facilities include a swimming pool, playground, business center, fitness center and racquetball court. The property is 2.1 km from downtown Glendale, 6.1 km from the city’s sports and entertainment district and less than 18 km from downtown Phoenix.

Focus on expansion

Berkadia Senior Managing Director Chinmay Bhatta, along with Managing Directors Noam Franklin and Cody Kirkpatrick, provided the Texas-based equity partner as part of a broader programmatic relationship that launched in September 2021. The partner provided SB Real Estate over $100 million in the past 12 months, contributing to the company’s $350 million multi-family expansion in the Southwest.

The Glendale asset purchase increased the partnership’s portfolio to seven multi-family properties comprising 620 units in Phoenix, 124 units in Redlands, Calif., and 497 units in Las Vegas. The joint venture paid $67 million for the first Las Vegas asset, the 241-unit Portola on Russell, and $73.1 million for the second, the 256-unit Portola West Vegas.

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