By: Paul Dionne | Vizzda
The market for quality multifamily assets in the City of Chandler continues to see strong pricing and high volume, registering $224.95m in sales, year to date. That trend continued earlier this week with the $33.4m sale of Ocotillo Springs by Weidner Apartments to Crown Realty Development. Another trend exemplified by this sale is the prevalence of funding from Government Sponsored Entities (GSE) in the acquisition of multifamily assets—in this case $22.8m in debt originated by Northmarq Capital and assigned to Freddie Mac.
The 272-unit apartment complex located east of the southeast corner of Alma School and Queen Creek Roads. It is comprised of seventeen residential buildings and a clubhouse totaling 253,716 rentable square feet, built in 1998 on a 16.68 acre site, zoned PAD. There are seventy-six one-bedroom units at 741 ft2, 168 two-bedroom units at 978 ft2 and twenty-eight three-bedroom units at 1,182 ft2. All units have full sized washers and dryers in unit and are individually metered for electricity.
TA Realty Associates—who acquired the nearby Park at San Tanmixed-use development for $68m last week—previously acquired Ocotillo Springs in April 2003 for $17,192,312 or $63,207 per unit in an all cash deal. In August 2010, TA sold the complex to Weidner Apartments for $24.7m or $90,808 per unit with $8.4m down and $17.4m GSE debt with Freddie Mac, originated by Wells Fargo. Crown’s acquisition earlier this week included $10.6m in cash consideration and represents a per unit price of $122,794.12.
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