By: Paul Dionne | Vizzda.com
A joint-venture between developers Mark-Taylor and Kitchell has completed the sale of the ParcLand Crossing apartment complex in Chandler for $65m or nearly $170k per door. The joint venture was formed in 2011 when an entity formed by Mark-Taylor and an affiliate of Kitchell Development Company acquired the parcel as raw land for $4.25m from Kitchell proper. The buyers were Seattle-based multi-family investors PrivatePortfolio Group, who put $23m down on the property and financed the remainder of the purchase price with $42m in new debt with Sun Life Assurance of Canada
The 383-unit apartment complex is comprised of twenty three 3-story residential buildings totaling 367,312 ft2 and five ancillary structures totaling 8,171 ft2 including a 4,711 ft2 clubhouse. The complex sits on a 20.84 acre site east of the southeast corner of Alma School Road and the Loop 202 San Tan Freeway and was delivered to the market in 2012. The gated community features two resort-style pools and amenities including in-unit laundry facilities and a fitness center.
Kitchell began acquiring land in the vicinity in 2006: picking up an adjoining parcel for $4,722,720 with $3.6m purchase money debt with JP Morgan Chase. The subject parcel was acquired in early 2007 for $6,203,038 and a Joint Development Agreement with the City of Chandler for the larger assemblage was entered into in May of that year. Following a debt modification in July which increased the balance on the JP Morgan note to $8m, the adjoining property was sold to Lauth Property Group for $10,433,569. As mentioned above, Mark-Taylor and Kitchell entered into a joint-venture in 2011, after which they encumbered the property with $36m in new construction debt with Wells Fargo.
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