Six Phoenix Area Apartment Complexes Purchased For $179.25M

VIZZDA- JULY 5TH, 2012 -- DRA Advisors Acquired 15 apartment complexes for $477m from United Dominion Realty (UDR).  The portfolio totals 4,931 units located in the following four markets: Phoenix, AZ (six properties); Jacksonville, FL (five properties); Dallas, TX (two properties); Richmond, VA (two properties).

The six Phoenix-area properties total 1,744 units and were purchased for a combined $179.25m ($102,781/door). HSBC underwrote $125m in six multifamily debt instruments, which mature July 1^st, 2019 and were assigned to Freddie Mac following origination (70% LTV).  The six properties are as follows:

·       Lumiere Chandler Condos—248 units at 1100 N Priest Drive in Chandler developed by UDR in 1996 and renovated in 2007. Purchased for $28m ($112.9k/door) and secured by an $18.5m multifamily deed of trust (66% LTV).

·       Residences at Stadium Village—382 units at 16845 N Stadium Way in Tempe developed by UDR in 2009. Purchased for $45m ($117.8k/door) and secured by a $25.75m multifamily deed of trust (57% LTV).

·       Finisterra Apartments—356 units at 1250 W Grove Parkway in Tempe developed by UDR in 1995 and completed in 1996. Purchased for $35.35m ($99k/door) and secured by a $25.75m multifamily deed of trust (73% LTV).

·       Sierra Foothills Apartments—322 units at 13601 S 44^th Street in Phoenix developed by UDR in 1998 and completed in 1999. Purchased for $27m ($83.85k/door) and secured by a $23.25m multifamily deed of trust (86% LTV).

·       Waterford At Peoria—200 units at 14109 N 83^rd Avenue in Peoria purchased by UDR following development by a third party in 2008.  Purchased by DRA for $22m ($110k/door) and secured by a $14.5m multifamily deed of trust (66% LTV).

·       Sierra Canyon Apartments—236 units at 17500 N 67^th Avenue in Glendale developed by UDR in 1998 and completed in 2000. Purchased for $22m ($93.2k/door) and secured by a $17.25m multifamily deed of trust (78% LTV).

Per DRA’s website, this purchase marks the first multifamily acquisition by DRA in the Phoenix market and represents the most recent addition to DRA’s 52k unit national multifamily portfolio. For UDR, this sale represents their exit from the Arizona, Florida and Virginia markets. Milestone has been contracted to provide property management. This disposition was initially reported in an April 4^th 2012 SEC Filing and press release filed by UDR.

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BY:
Hadden Schifman
Managing Director

Hadden@VIZZDA.com