Aetna and Security Properties Acquire Sonora Canyon Apartments

Sonora Canyon Property Map

By: Paul Dionne | Vizzda 

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 1^st, 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 17^th, 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.

To Contact the Author: 

Paul Dionne - pdionne@vizzda.com