Newmark Knight Frank Arranges $51.9MM in Construction Financing on Behalf of JMA Ventures, LLC for the Development of a 278-unit Multifamily Project Within a Qualified Opportunity Zone in Downtown Phoenix, AZ

Newmark Knight Frank, JMA Ventures, Phoenix, Barings, Warehouse District, BGC Partners, MassMutual, Barings Real Estate

San Francisco, CA (July 30, 2019) — Newmark Knight Frank (NKF), on behalf of the JMA Ventures, LLC, has secured $51.9 million in non-recourse construction financing for the development of The Battery (the “Project” or “Property”), a 278-unit multifamily project located within the Warehouse District of downtown Phoenix, Arizona. The construction facility was provided by Barings, one of the world’s largest diversified real estate investment managers, on behalf of one of its managed accounts. JMA has secured entitlements for the project and will begin construction within the month with the first delivery of completed units anticipated during the second quarter of 2021. The Battery is structured as a qualified opportunity zone investment and will be part of JMA’s growing opportunity zone focus and platform.

NKF’s Chris Moritz and Ramsey Daya represented the borrower in the financing efforts.“The project’s incredible infill location within rapidly-changing Downtown Phoenix as well as the strength and experience of JMA and their incredibly designed project resulted in strong interest from the lending market,” Moritz said. “Barings separated themselves from the market by demonstrating a firm understanding of the dynamics of the Downtown Phoenix market and delivered very favorable terms for the borrower.

”The Project will feature luxury amenities for residents including floor to ceiling glass windows, polished concrete floors and smart home technology packages.  It will also include a one-of-a-kind rooftop amenities deck that will include pool, spa, barbeque areas and a state-of-the-art fitness center while providing unobstructed views of Downtown Phoenix.

“Well-located and well-designed projects like The Battery continue to attract strong interest from the debt markets even in an environment of escalating costs,” said Daya. “This assignment expands our team’s significant recent experience aiding in the capitalization of opportunity zone projects, an area of the market we are seeing growing demand.

”The 3.0-acre project site sits in the heart of the vibrant Warehouse District on the south end of the Downtown Phoenix core. It is walking distance to the numerous dining, retail and entertainment venues, including Chase Field and Talking Stick Resort Arena, as well as two METRO Light Rail stations.  

About Newmark Knight Frank

Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 16,000 professionals operate from approximately 430 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com. Newmark Group is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”) (NASDAQ: BGCP), a leading global brokerage company servicing the financial and real estate markets.

About Barings

Barings is a $325+ billion* global financial services firm dedicated to meeting the evolving investment and capital needs of our clients and customers. Through active asset management and direct origination, we provide innovative solutions and access to differentiated opportunities across public and private capital markets. A subsidiary of MassMutual, Barings maintains a strong global presence with business and investment professionals located across North America, Europe and Asia Pacific. Learn more at www.Barings.com.

About Barings Real Estate

Barings Real Estate offers a broad range of global investment opportunities across the public and private debt and equity [real estate] investment markets. We invest in all major property sectors and offer a broad range of financing solutions to real estate borrowers. We also specialize in providing government and government-sponsored entity lending products through our wholly owned subsidiary, Barings Multifamily Capital.

*As of June 30, 2019.

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