Los Angeles, Calif. – PCCP has provided an $84 million senior loan to Pacific Development Partners for the refinance of Montreux, a 335-unit, Class A multifamily community located at 5550 E. Deer Valley Drive in Phoenix, AZ (North Phoenix submarket). The three-building property was delivered in 2019 and is approximately 89% leased. The financing was marketed by James Bach of CBRE.
The unit mix includes a one-, two-, and three-bedroom units with an average size of 1,058 square feet (sf). The apartments feature modern interiors with quartz countertops, stainless-steel appliances, and smart-home technology. On-site community amenities include two pools, a fitness center, rooftop clubhouse, pickleball and tennis courts, a game room with multi-sport simulator, and structured parking.
Residents benefit from immediate access to retail, dining, and entertainment directly across the street at High Street, a 175,000-sf lifestyle corridor featuring Sprouts Farmers Market, a live comedy venue, cafés, fitness studios, salons, and boutique retailers. One block south, Desert Ridge Marketplace offers 1.2 million sf of open-air shopping anchored by Target, Albertsons, Nike, and Sephora, along with numerous restaurants and entertainment options including Starbucks, Chipotle, and AMC Theatres. The property also benefits from strong employment growth along the Loop 101 corridor, including the nearby Mayo Clinic Hospital (7,000+ jobs), and American Express Regional Campus (3,000+ jobs), and future corporate expansions such as Republic Services’ 265,000-sf headquarters and Sprouts Farmers Market’s 145,000-sf headquarters and grocery campus. Direct access to Loop 101 and State Route 51 provides convenient connectivity to Scottsdale Airpark (15 minutes) and Downtown Phoenix (30 minutes).
The 46,400-unit North Phoenix multifamily submarket continues to adjust to elevated new supply following a period of record construction. Over the past twelve months, the submarket absorbed roughly 690 units, offsetting about half of the 1,410 units delivered during that same period. Deliveries peaked in 2024 but are projected to decline steadily through 2026 as absorption strengthens. Looking forward, absorption is projected to reach 64% of deliveries in 2026, 100% in 2027, and 174% in 2028 according to CoStar, which PCCP believes demonstrates the improving balance between supply and demand. Within a three-mile radius of the Montreux, the population is anticipated to grow approximately 2% annually, adding roughly 6,200 residents over the next four years.
