Paragon Seals Arizona Multifamily Acquisition With $20M Greystone Loan
Paragon Outcomes Management and Westmount Realty Capital have closed on their purchase of Urban Trails at the District, a 156-unit garden-style multifamily property in Mesa, Ariz., Commercial Observer has learned.
The acquisition price wasn’t disclosed, but Greystone provided a $19.6 million Fannie Mae DUS loan in the deal. Greystone managing director Richard Kourbage originated the debt while Jay Spearman of Hunter Spearman arranged the financing.
“We greatly value our continued relationship with Westmount Realty as they continue to grow across the Sunbelt,” Kourbage told CO.
“We are excited to announce our second multifamily acquisition in the Phoenix MSA, which has strong underlying fundamentals with considerable population and job growth,” Frank Tripoli, Managing Partner and Chief Investment Officer, said. “We are happy to partner again with Westmount Realty Capital on this acquisition – Westmount is an experienced, institutional operating partner.”
In October 2019, the two firms also teamed up to buy 949 at the District, a 154-unit apartment complex.
Westmount was able to procure the deal in a somewhat off-market transaction from Western Wealth, the same seller of the property that the partnership acquired back in in late 2019. Urban Trails is the sister property to the 949 at the District property, and located less than a quarter mile away. New York-based Paragon’s familiarity with the market allowed the firm to get comfortable with the transaction without having to fly to Arizona during the COVID pandemic.
Located at 1620 West Southern Avenue, the asset is located within the Fiesta District, one of two key business districts within Mesa. The Fiesta district is currently undergoing a $500 million redevelopment transformation to create a more vibrant, pedestrian-friendly destination.
The property is less than a mile from Fiesta Mall, which will be redeveloped into a 1.3 million-square-foot education and healthcare campus that will include restaurants and entertainment. Major employment hubs near Urban Trails include Banner Desert Medical Center, Santander Consumer USA, Mesa Community College, plus several healthcare and retail centers.
Paragon and Dallas, Texas-based Westmount’s near-term plans for Urban Trails include either a partial or full renovation program across the units as well as improvements and enhancements to its amenities, which includes two pools, a clubhouse and a fire pit.