Friday, July 20, 2012

Baron Properties Buys The San Ventura Apartments

VIZZDA—July 20th, 2012 – Danny Gabriel of Colrich was signatory to the sale of the San Ventura Apartments, a 272-unit apartment complex at 3600 W Ray Rd, Chandler which was purchased by J Jeffrey Riggs of Baron Properties, for $29,650,000 or $109k per door on July 19th, 2012. Baron Properties put $9,260,000 down, secured a $3,278,500 Freddie Mac Multifamily Loan originating with Holliday Fenoglio & Fowler (HFF), and assumed an existing $17.18M loan (5.08% A.P.R. fixed, maturing April 1st, 2018) originated by HFF as an FHLMC loan March 3rd 2011 and assigned to Citibank September 16th, 2011.   

The 2-story apartment complex consists of 34 buildings built in 1995 on 14.67 acres. The apartments’ exterior was renovated in 2006 and Colrich has been renovating the apartments’ interiors as they have turned over. The individually-metered complex features a unit mix of 104 1Br/1Ba (921 ft2), 144 2Br/2Ba (1,173 ft2) and 24 3Br/2Ba (1,442 ft2). The community is 94% occupied.

The apartments were acquired by Colrich on May 10th, 2007 for $40.7M with $10.2M down and $30.5M debt with Capmark Finance; per affidavit of value, $2.035M of the sale price was for the furnishings.  The Capmark debt was modified September 18th, 2008 by splitting it into two notes: note A $19.32M & note B $11.18M. Colrich then took on $19.45M debt March 23rd, 2009 with California Bank & Trust in two notes: note A $17.225M & note B $2.225M. Colrich used the proceeds to  pay off the Capmark Note A debt on March 23rd, 2009 and the remaining debt on April 23rd, 2009. 

On March 1st, 2010 Colrich transferred the ownership of the San Ventura apartments to a second Colrich-owned entity recording a sale price of $20.475M with $3.39M down and the assumption of the California Bank & Trust notes. With this assumption, however, Zions First National Bank now holds Note B ($2.225M) and must be paid off first. On March 3rd, 2011 . Holliday Fenoglio Fowler originated a $17.18M FHLMC loan (fixed 5.07% rate, maturing April 1st, 2018) which was securitized (CMBS) and to be serviced by HFF.  This debt was assigned to Citibank September 16th, 2011 and assumed by Baron Properties in the current sale.

Ed Moore
Research Analyst

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