By: Paul Dionne | Vizzda
July has been one of the busiest months for multifamily sales since the early 2013 acquisition of Archstone Enterprises by Equity Residential and Avalon Bay Communities and the attendant nine-property divestiture from the Phoenix market by Equity Residential. In keeping with this trend of high unit turnover, Elliot Crossing Apartments was acquired by Bridge Investment Group Partners for $22.25m or $90,080 per unit. Bridge Investment Group Partners paid $5.563m in cash for the property and secured $16.687m in new agency debt with KeyBank Real Estate Capital, assigned to Freddie Mac at origination.
Elliot Crossing is located north of the northwest corner of Kyrene and Elliot Roads in Tempe. It is a 247-unit complex in thirteen two and three story buildings totaling 182,166 ft2. It was completed in 1987 on a 9.7 acre site, zoned R-4. The unit mix is 167 one bedroom units ranging in size from 600 ft2 to 825 ft2, 28 two bedroom units with one bathroom at 1,010 ft2 and 52 two bedroom units with two bathrooms at 1,076 ft2. All units are individually metered for electricity and master-metered for water, sewer and trash. Vizzda previously reported on Bridge’sacquisition of Aventerra at Dobson Ranch—a 576-unit apartment complex at the corner of Dobson and Guadalupe in Mesa—for $38.425m or $66,710 per unit.
The seller, Omaha, Nebraska-based Slosburg Real Property, acquired the property from Sentinel Realty Advisors on March 12th, 2010 for $11.85m or $47,975 per unit—53.25% of the current sales price. Rather than finance the acquisition through agency debt (like Bridge Investment Group Partners in the current sale) or through debt secured under an municipal bond (like Sentinel in the prior sale), Slosburg loaned itself the purchase price—less $3.35m in cash tendered at time of sale—through an affiliated entity. That debt was released and replaced with a new $7.8m loan with Prudential Insurance Company as part of a $45m refinancing of several assets, which was subsequently released with the current sale.
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