Humberto Lopez Sells The Montana Apartments to AION Partners

VIZZDA—November 29^th, 2012 — Omar Mireles, Vice-President of HSL Properties as signatory, and Humberto Lopez as that firm’s principal, have completed the sale of The Montana Apartments to AION Partners of New York for $11.5m or $85,820.59 per door. AION paid $3,009,000 in cash for the property and secured $8.5m new multifamily portfolio debt issued by CBRE Capital Markets, maturing December 1^st, 2022 and assigned to Freddic Mac at origination.

The 134-unit complex located at the Southeast corner of 36^th Street and Baseline Road is comprised of sixteen one and two story buildings totaling 154,895 ft² per public documents. It was built in 1998 on 7.99 acres zoned R-3. The units are individually metered and include: 

• 699 ft² 1 bedroom 1 bath units renting for $740
• 789 ft² 2 bedroom 2 bath units renting for $961
• 949 ft² 3 bedroom 2 bathroom units renting for $1,120

 The property manager, Allison Shelton Real Estate, reports a 97.6% occupancy rate.

The prior non-distressed, arms-length transaction occurred on August 16^th, 2006 when Michael Sauter paid $15.17m or $113,208 per unit to acquire the property from Howard and Judith Bassham. Sauter paid $1.1m in cash for the property and secured $17,054,595 new debt with Wachovia Bank. Wachovia assigned the note to a collateralized debt obligation  and noticed the property for trustee sale on September 18^th, 2008. On December 24^th, 2008, the property was auctioned and reverted to beneficiary with a $9m credit bid.

That reversion entity was able to sell the property to HSL Properties in less than a year for $7.6m or $61,290 per unit. The recent sales price represents a 15.8% annualized rate of return for HSL Properties.

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By:

Paul Dionne

Director of Analytics

Vizzda.com