Greystar Acquires the Via Ventura Apartments in Scottsdale for $36.5m

VIZZDA—May 21^st, 2013 — Greystar continues to acquire and Equity Residential  (EQR) continues to dispose of multi-family assets in Greater Phoenix, even after the former’s co-venture with Goldman Sachs closed its twenty seven-property portfolio sale and the latter completed its $11b acquisition of Archstone Enterprises. Acting through a non-traded REIT affiliate, Greystar Equity Partners VII, Joshua Carper and Robert Faith purchased the 328-unit Via Ventura Apartments from EQR for $36.5m or $111,280.49 per unit.

The 2-story complex is comprised of twenty-three buildings totaling 232,288 ft² built as three separate developments beginning in 1977 with seven buildings totaling 70,307 ft², followed by eleven buildings totaling 166,301 ft² in 1979 and culminating with five buildings totaling 45,680 ft² in 1985. It is located at the southwest corner of Hayden Road and Via De Ventura in the McCormick Ranch area of Scottsdale. The units are individually metered for electricity and master-metered for water, sewer and trash—though the associated fees are passed-on to tenants, pro-rata.

Unlike many of the properties the company has sold of late, Via Ventura was not acquired pursuant to EQR’s 1999 merger with Scottsdale-based Evans Withycombe Residential. Instead, EQR purchased the property on July 18^th, 1994 from Centennial Properties for $14,747,163 or $44,930.57 per unit. While the acquisition was cash-only, the property was later encumbered under an existing $136m deed of trust with Lasalle Bank. This debt was released and replaced with a cross-collateralized term note with Wells Fargo in the principle amount of $550m, which was itself partially released with the current sale.

Ignoring operations, the $36.5m sale price represents an 147.31% absolute rate of return and 7.82% on an annualized basis. Greystar paid $9.4m in cash and secured an additional $27.1m in agency debt with Prudential Multi-family Capital. The note was assigned to Fannie Mae at origination and though no maturity is listed in recorded documents, it is uncommon for commercial agency debt to bear maturity greater than ten years.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Acacia Creek Apartments in Scottsdale Sold for Nearly $40m

VIZZDA—February 19^th, 2013 — Another major multi-family asset has changed hands in the East Valley with Equity Residential’s (NYSE: EQR) sale of the Acacia Creek Apartments to Paul and Greg Merage of MIG Real Estate, a Newport Beach-based investor. This sale caps a week in which Equity Residential sold 1,231 units in four transactions totaling $148,149,311 or $120,348.75 per door.

The 304-unit complex is comprised of twenty 2-story buildings totaling 281,416 ft² on 14.19 acres, zoned R-5. It was constructed in several phases from 1988 to 1992. The property is located south of the southwest corner of Scottsdale Road and Shea Boulevard near Chaparral High School. The property manager, Alliance Residential, reports a 96% occupancy rate.

Equity Residential acquired the property pursuant to its $1.06b acquisition of Scottsdale-based multi-family developer, Evans Withycombe Residential, Inc., on April 30^th, 1999. While no sales price was listed at the time of transfer, Equity Residential did include the property as collateral for a $126,452,000 loan underwritten by Capri Capital, assigned at origination to Fannie Mae as part of their Delegated Underwriting and Servicing (DUS) program and maturing on August 1^st, 2009.

MIG Real Estate paid $1.5m in cash for the property and secured an additional $28.25m new debt with CBRE Multifamily Capital, which was assigned to Fannie Mae at origination. The sales price includes $91,200 in fixture and furniture costs for a per unit cost of $131,160.52. Paul Merage is the founder of Chef America which manufactured and distributed Hot Pockets® and Lean Pockets® before being sold to Nestle in 2002 for $2.6b.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Camden Acquires The Montierra Apartments in Scottsdale

Vizzda – December 20, 2012 – Camden Property Trust, through Senior Vice President Karen A Church, has acquired the Montierra Apartments for $45.7M or $183,534 per door from Equity Residential,represented in the sale by Senior Vice President Cydney White.

The Montierra Apartments consist of 249 individually-metered units in nine 2&3-story apartment buildings totaling 266,649 square feet. It was built in 1998 on 10.61 AC zoned R-5. Camden will be managing the property. Unit mix and more details may be found in the broker flyer here.

Equity Residential acquired the apartments through the acquisition of the prior owner, Evans Withycombe Residential, which Equity acquired for a reported $625 in August of 1997. The real estate transfer took place on April 30, 1999 in a related-entiry transaction with no saleprice and no debt. The property was included in the cross-collateralization for a Fannie Mae Loan recorded June 10, 2005 for a total of $126.452M, with the debt released July 10, 2009. The property was collateral for a $17,858,854 Freddie Mac Loan originated July 1, 2009 with Deutsche Bank, and cross collateralized by agreement with 12 other loans before assignment to FHLMC, this debt was released with the current sale.

Camden did not list a cash payment for the property and no debt was recorded with sale. That being said, on December 7^th, Camden issued $350M in 2.95% notes dues 2022 to JP Morgan Chase, Merrill Lynch, U.S. Bancorp and Wells Fargo Securities as underwriters. This acquisition is the second of two major multifamily This is the second of two major multifamily acquisitions by Camden in as many days, totaling $92.6M for 569 units in Scottsdale, AZ.

Edward Moore

Director of Research

www.vizzda.com

Virtu Investments Buys the Cortona at Dana Point Apartments

VIZZDA—July 16^th, 2012 -- Cydney White, First Vice President of Equity Residential, has completed the sale of Cortona at Dana Point Apartments—a 222-unit complex at 1440 S. Val Vista Drive in Mesa. Scott McWhorter, Principle of Virtu Investments, paid $17.4M or $77,678 per door for the 19-building multifamily complex. Virtu tendered $4.366M and received $13.034M in financing from CBRE Capital Markets, Inc., maturing August 1, 2019 and assigned to Freddie Mac following origination.

The 2 -story complex was built in 1986 on 11.04 acres zoned R-3. The property was re-developed by Evans Whitycombe Residential in 1997. Per CBRE broker flyer:

Interior unit amenities include full-size washer/dryers, fully-appointed kitchens with breakfast bars and pantries, built-in computer desks and niches in select units, mirrored closet doors in select units, walk-in closets, wood-burning fireplaces in select units, and private patios and balconies

The apartments were previously acquired by a partnership of Evans Withycombe Residential and Copley Advisors prior to a February, 20^th 1990 recordation of cross-collateralized debt. Evans Withycombe purchased the outstanding shares in the property from Copley Advisors in a related-party transfer on August 17^th, 1994 for $7,820 and the assumption of existing debt. Equity Residential announced the acquisition of Evans Withycombe Residential August 29^th, 1997 for $1.06B.

Equity Residential had previously listed the property through CBRE for $19.15M or $86,261/unit. This is the third major disposition in the Phoenix Market for Equity Residential covered by Vizzda.

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By:

Ed Moore

Research Analyst

emoore@vizzda.com

Vista Grove Apartments Sold for $20.65m

VIZZDA—June 14th, 2012 -- The Vista Grove Apartments—a 224-unit complex comprised of twenty one buildings totaling 202,266 ft²—was purchased by the M.F. Daily Corporation of Ventura, CA for $20.65m or $92,600 per door. M.F. Daily has secured a $15m Multifamily Loan originated through CBRE Multifamily Capital to fund the acquisition. The complex was built in 1997 south of the southwest corner of Val Vista Drive and Southern Avenue and includes seventy-two one-bedroom apartments at 716 ft², eighty two-bedroom apartments at 967 ft², thirty-two two-bedroom apartments at 971 ft² and forty three-bedroom apartments at 1,133 ft². The apartments are individually metered and 98% occupied. Greystar Management has been retained to manage the property.

The seller—Equity Residential as represented by its First Vice-President, Cydney White—had previously acquired the property through its acquisition of Scottsdale-based Evans Withycombe Residential on April 30th, 1999. As reported in both the Wall Street Journal and the New York Times, Equity Residential under then-CEO Sam Zell agreed to purchase Evans Withycombe Residential for $625m including the assumption of $435 existing debt. The agreement called for the tender of one half share Evans Withycombe Residential stock and limited partnerships in exchange for a full share of Equity Residential stock.

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Weidner Residential Buys The Mirador Apartments

VIZZDA--June 8th, 2012 -- THE MIRADOR APARTMENTS – A 316 unit apartment complex at 1550 E Thunderbird Rd in Phoenix – was sold by an Eaton Vance Management and Equity Residential co-venture to Weidner Apartment Homes for $31.133M ($98.5K per door) – with the deal recording on June 6. 
The 2 & 3-story apartment complex features a mix of 1, 2 and 3-bedroom apartments in 24 buildings which were developed by Evans Whitcombe Residential in 1994-5 on 19.34 acres that they had acquired in two purchases on September 21st, 1994 & March 31st, 1995 for $2,638,750 or $3.13/sf with $11.13M debt issued October 27th, 1994) with Bank One. 
Evans Whitcombe was purchased by Equity Residential Property trust who transferred the property to Eaton Vance 2/27/01 with no saleprice recorded. Equity Residential is one of Eaton Vance’s top 10 holdings, so as a related entity no saleprice need be recorded. Also on February 27th, 2001 Eaton Vance arranged for a $134.755M Freddie Mac Multifamily loan, originating with Berkshire Mortgage Finance Lp and an additional $9.045M Jr Lein with CapREIT Northlake LP borrowed against a cross-collateralization of 11 apartment complexes, including The Mirador Apartments. 
This facility matured March 1st, 2011 but paid in full on October 27th, 2010. A $20.825M non-cross collateralized Freddie Mac Multifamily loan replaced the previous facility on October 7th, 2010. This new loan originated with Deutsche Bank and the remaining balance of this loan was assumed by Weidner.