Tuesday, February 19, 2013

Acacia Creek Apartments in Scottsdale Sold for Nearly $40m

VIZZDA—February 19th, 2013 — Another major multi-family asset has changed hands in the East Valley with Equity Residential’s (NYSE: EQR) sale of the Acacia Creek Apartments to Paul and Greg Merage of MIG Real Estate, a Newport Beach-based investor. This sale caps a week in which Equity Residential sold 1,231 units in four transactions totaling $148,149,311 or $120,348.75 per door.

The 304-unit complex is comprised of twenty 2-story buildings totaling 281,416 ft2 on 14.19 acres, zoned R-5. It was constructed in several phases from 1988 to 1992. The property is located south of the southwest corner of Scottsdale Road and Shea Boulevard near Chaparral High School. The property manager, Alliance Residential, reports a 96% occupancy rate.

Equity Residential acquired the property pursuant to its $1.06b acquisition of Scottsdale-based multi-family developer, Evans Withycombe Residential, Inc., on April 30th, 1999. While no sales price was listed at the time of transfer, Equity Residential did include the property as collateral for a $126,452,000 loan underwritten by Capri Capital, assigned at origination to Fannie Mae as part of their Delegated Underwriting and Servicing (DUS) program and maturing on August 1st, 2009.

MIG Real Estate paid $1.5m in cash for the property and secured an additional $28.25m new debt with CBRE Multifamily Capital, which was assigned to Fannie Mae at origination. The sales price includes $91,200 in fixture and furniture costs for a per unit cost of $131,160.52. Paul Merage is the founder of Chef America which manufactured and distributed Hot Pockets® and Lean Pockets® before being sold to Nestle in 2002 for $2.6b.

By:
Paul Dionne
Director of Analytics
Vizzda.com

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