$28.4M in financing secured for Arizona multi-housing community

DENVER, July 26, 2022 – JLL Capital Markets announced today that it has arranged the $28.4 million financing for Villatree Apartments, a 150-unit, garden-style multi-housing community in Tempe, Arizona.

JLL represented the borrower, Epic Investment Services, to secure the five-year, floating-rate loan through a correspondent life insurance lender.

Consisting of 11 two-story residential buildings with an attached leasing office, Villatree Apartments was originally constructed in 1980 and has been well maintained with meaningful capital investment and partial unit renovations from previous ownership. Upon acquisition, Epic Investments Services will implement a capital plan to upgrade community amenities and unit interior renovations, transforming Villatree into a premier residential community in Tempe.

The property consists of studio, one and two-bedroom unit types with an average size of 815 square feet. The units feature fully equipped kitchens, spacious closets and private patios or balconies, and select units offer stainless steel appliances and stackable washers and dryers. Community amenities include two swimming pools, an on-site playground, pool lounge areas and on-site laundry facilities. Epic plans to add additional premium units with stainless steel appliances and washers and dryers, as well as install a dog park and outdoor fitness area.

Situated at 1705 S Price Rd., the property’s location is supported by unmatched transit connectivity led by the nearby entry to the Loop 101 and complemented by walkable access to the Valley METRO Light Rail, with the Price Road/Apache Boulevard station located less than one-half mile northeast. The immediate neighborhood surrounding Villatree comprises a mixture of multi-housing projects, The Southwest College of Naturopathic Medicine and commercial developments to the south. The Mekong Plaza and Tricity Pavilions retail centers are located just east of the property and the Southern Palms Shopping Center and Valley Plaza are located to the south.

The JLL Capital Markets Debt Advisory team representing the borrower was led by Director William Haass, Senior Managing Director Eric Tupler and Senior Managing Director Brad Miner.

“Epic is poised to capitalize on strong apartment market fundamentals and will execute a comprehensive value-add renovation program, positioning Villatree as a first-class residential offering in Tempe,” said Haass. “JLL capitalized this deal in a challenging environment that required our team to get creative in our request, which attracted several capital sources to quote the opportunity. Ultimately, we sourced competitive financing terms from a correspondent life insurance company that recognized the strength of the opportunity and sponsor.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Epic Investment Services, which includes its wholly owned subsidiary MDC Realty Advisors in the United States, is a fully integrated North American real estate platform. Epic’s Canadian head office is located in Toronto, Ontario, and its U.S. head office is located in Denver, Colorado. Epic’s portfolio comprises 30 million square feet and $16.5 billion in assets under management in office, retail, industrial and multi-family residential properties.

For more information on Epic Investment Services, visit epicinvestmentservices.com.