North River, Crestline, Palladius Provide $45M Construction Loan for Arizona Rental Housing

Salt Lake City developer Overland Group has sealed $45 million of construction financing to build a multifamily complex in suburban Phoenix, Commercial Observer has learned.

North River Partners, Crestline Investors and Palladius Capital supplied the loan for Overland Group’s planned 200-unit apartment and townhome project in Peoria, Ariz.

“We remain confident in the long-term trajectory of the Peoria submarket,” Jeff Rosenfeld, co-managing partner at New York-based North River Partners, said in a statement. “The market sits at the nexus of population growth and an expanding high-tech manufacturing base that is transforming the Northwest Valley.”

Sean Robertson, co-managing partner at North River, added that a drop in construction starts coupled with a “demographic outperformance relative to the rest of the market,” makes the  Peoria submarket attractive from a lending perspective. 

Walker & Dunlop arranged the transaction with a team led by Michael Ianno, Michael Stepniewski, Jonathan Schwartz, Aaron Appel, Dustin Stolly, Adam Schwartz, Sean Reimer and Keith Kurland.

Located at 8455 Grand Avenue 13 miles northwest of Downtown Phoenix, the project will consist of six buildings for rental apartments and nine buildings for townhomes. The development is slated for completion in 2027. 

“The Northwest Valley’s evolving supply dynamics, combined with demonstrated execution capability, made this an attractive opportunity for Crestline, supported by the project’s transit-oriented location and thoughtful design,” Wes Davidson, director at Texas-based Crestline Investors, said in a statement. 

Officials at Palladius Capital did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.