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.
To Contact the Author:
Paul Dionne - pdionne@vizzda.com
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