By: Paul Dionne | Vizzda
In one of the largest transactions in terms of dollar value
thus far this year, Chicago-based investment management firm, Heitman, sold one
of the largest apartment complexes in the valley—the 676-unit Lakeview at
Superstition Springs for $66.6m. The buyer was San Diego-based multifamily
developer Fairfield Residential who paid $19.2m in cash for the property and
secured an additional $47.4m in funding from CBRE Multifamily Capital, assigned
to Fannie Mae at origination. Fairfield owns or manages ten other properties in
the greater Phoenix area. The $66.6m
sales price equates to $98,520 per unit.
Lakeview at Superstition Springs’ 676 units are situated in
eighty-nine residential buildings totaling 636,963 ft2 in addition
to a leasing office and clubhouse that bring the total improved square footage
above 640,000. The property was built in two phases: forty-two buildings
totaling 287,135 ft2 built in 1996 and forty-nine buildings totaling
356,668 ft2 built in 1998. The gated complex sits on 42.72 acres net
of the lakes complex that runs through the property and features four resort-style
pools. The one bedroom floor plans range from 660 ft2 to 776 ft2,
the two bedrooms range from 916 ft2 to a 1,314 ft2
split-level and three bedroom floor plans range from 1,181 ft2 to 1,214
ft2.
Heitman previously acquired Lakeview at Superstition Springs
in March of 2006 for $59.4m or $87,869 per unit from Nearon Enterprises. At the
time of sale, Heitman assumed $38m in existing CMBS debt in care of Lasalle
Bank and secured additional funding in two notes with Deutsche Bank Berkshire
Mortgage of $8.957m and $29.543m, maturing April 1st, 2011 and both
of which were assigned to Fannie Mae at origination. Those debts were released
in May of 2012 and replaced with $36m in new debt with CW Capital. Ignoring
financing and carry costs and operational proceeds, Heitman earned a 12.1%
absolute rate of return and a 184.6% cash-on-cash return.
To Contact the Author:
Paul Dionne – pdionne@vizzda.com
Thank you dear for sharing such an informative post. I am also looking for right opportunities to invest in Luxury Arizona Real Estate. You know I already have invested in a lot of real estate because I feel this is the best option to invest the money.
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