Alliance Residential Acquires The Canyon Apartments for $50m

VIZZDA—December 27^th, 2012 — As referenced in our December Market Overview, the largest multifamily transaction in the month of December was David Snyder of Continental Realty Advisors’ (CRA) sale of The Canyon Apartments to Alliance Residential for $50m or $79,491 per door. Russ Kindorf was signatory for Alliance Residential, which paid $17.5m in cash and secured $32.5m in financing with Keybank.

The 629-unit master-metered complex is divided into two communities—Montelena and Bacala—with thirty-six 2-story buildings totaling 460,525 ft². It was constructed in 2004 on 15.61 acres, zoned R-4A. The table below contains information on the unit mix of the property:

Number of Units	Bedroom/Bathroom	Base Rent	Square Feet
184	0/1	$679 – $749	475 – 500
104	1/1	$779 – $899	484 – 781
247	2/1-2	$899 – $1,109	695 – 1,000
58	3/2	$1,049 – $1,179	984 – 1,060
36	4/2	$1,269	1,166

CRA acquired the property on July 8^th, 2010 from LNR Partners as special servicer for a $63m CMBS note held in trust by Wells Fargo. CRA paid $45.5m or $72,337 per door—a 16.6% premium on the $39m credit bid entered by LNR—with $2m down and two additional notes:

• $17m issued November 1^st, 2010 by Northmarq and assigned to Freddie Mac at origination and maturing on November 1^st, 2015
• $28.5m issued August 31^st, 2012 by Keybank maturing August 31^st, 2014

The $50m price tag represents a 3.9% annualized rate of return for CRA, net of income from continuing operations.

By:

Paul Dionne

Director of Analytics

Vizzda.com