|Sonora Canyon Property Map|
Capping off a seven-day period in which 915 multifamily units changed hands for nearly $125m, The Sonora Canyon Apartments were purchased by a joint-venture between Seattle-based multifamily investors, Security Properties, and health insurance giant, Aetna, for $30m or $77,320 per unit. The seller was Marc Lipshy of Lone Star Funds, who acquired the property almost exactly one year ago for the same amount. Security and Aetna paid $8,102,501 in cash for the apartment complex and secured $24.999m in new agency debt originated by Prudential Mortgage Capital, assigned to Freddie Mac and maturing August 1st, 2021.
The 388-unit apartment complex—located south of the southeast corner of Gilbert Road and University Drive in Mesa—is comprised of thirty-three 2-story buildings totaling 312,880 net rentable square feet built in 1984 on a 15.8 acre site. There are four one-bedroom floor plans totaling 224 units and ranging in size from 570 ft2 to 768 ft2 and four two-bedroom floor plans totaling 164 units and ranging in size from 882 ft2 to 1,042 ft2. All units are individually metered for power and master metered for water, sewer and trash. There are three resort-style pools on site as well as a basketball and tennis court.
|Sonora Canyon Communal Space|
Vizzda tracked the history of this asset back to 2000, when it was purchased by Duluth-based multifamily investor, Mercury Investments, for $16.875m or $43,492 per unit with $14.428m in new debt with First Union Bank for a loan-to-value (LTV) ratio of 85.5%. In 2005, Mercury sold the property to one of the current buyers, Security Properties for $22.15m or $57,087 per unit, fully financed by GMAC Commercial Mortgage. Orix Real Estate Capital picked up the complex for $33m in 2007 and sold to Lone Star Funds on July 17th, 2013 for $30m. Lone Star Funds encumbered the property under an existing $494,262,293 deed of trust with Citibank and the Royal Bank of Canada secured by eight additional properties.
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