488-Unit San Melia Apartments Sells for $84 Million

Area map - Does not account for condoed division of parcel

GE Asset Management purchased the San Melia Apartments on Monday for $84 million or $172,000 per unit, funded by a $46.2 million loan with Fannie Mae. The apartment complex is condoed, however the entirety of the project conveys in this transaction. Buyers assumed SRP "license" to use the area, as it sits over an extension of the Highline Canal.

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The San Melia Apartments consists of 488 units in sixty-four buildings built in 1998. Sixty-eight of these units were renovated in 2011. It is located south of the southeast corner of 48th Street and Ray Road, and includes one pool.

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Cambria Luxury Apartments in Gilbert Transact for over $24 Million

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Fairfield Residential has purchased the Cambria Luxury Apartments located near the northwest corner of Guadalupe and Gilbert. The $24.35 million transaction was financed through the assumption of an exisiting $10 million Fannie Mae loan as well as an additional $5.5 million in new debt with Fannie Mae.

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174 units make up the Cambria Luxury Apartment complex, including one, two, and three-bedroom unit sizes. It was built 2000 on 8.7 acres and includes one pool.

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248-Unit Wyndhaven Apartments in Mesa Sell for $29 Million

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On Monday Los Angeles-based Benedict Canyon Equities purchased the Wyndhaven Apartments located at the northeast corner of Greenfield Road and the US-60 in Mesa. The Al Angelo Company sold the apartments for $29.2 million or $117,741 per unit. A $20,489,000 loan with Fannie Mae (originated through Berkadia Commercial Mortgage) funded the transaction.

This 248-unit apartment complex was built in 1999 on just under 15 acres. It includes floorplans of one, two, and three-bedrooms, as well as two pools.

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Biltmore Waterfront Apartments Sell for $10 Million in Bank Sale

Area Map

Pratik Jogani of Los Angeles has purchased the Biltmore Waterfront Apartments near the I-17 and Cactus Road for $10 million. The sales price on the 288-unit property reflects $35,000 per unit and was funded by an $8.8 million Fannie Mae loan. This is a bank sale from a CMBS portfolio managed by CW Capital, which comes five years after the property was foreclosed for a $7,328,000 opening bid amount.

The Biltmore Waterfront Apartments was built in 1979 on 9.5 acres. It consists of thirteen three-story buildings and includes a unit mix of one and two-bedroom floorplans, one pool, laundry facility, and gated access. It is located directly west of the I-17 freeway, and less than a mile north of Metrocenter Mall.

For more information on this property including full distress history, complete unit mix, and buyer/seller contacts, visit us at our website or send us an email. We're happy to hear from you!



        

Fairfield Residential Buys Lakeview at Superstition Springs

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 1^st, 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

MIG Continues Multifamily Buying Spree

By: Paul Dionne | Vizzda

Less than two months after his brother, David Merage of Consolidated Investment Group, closed on the distressed Block 1949 Apartments in Tempe, Greg Merage of MIG Real Estate has acquired Symphony Apartments in Chandler for $34.164m or more than $150k per unit. This is the second major multifamily acquisition by MIG this year following the $41.85m purchase of the Quadrangles in April and the fourth major acquisition since the start of 2013, totaling $126.564m for 1,048 apartment units and a 90k SF office building. MIG put $10.65m down and secured an additional $24.85m in funding through a Fannie Mae loan originated by CBRE Multifamily Capital.

The 234-unit apartment complex is comprised of fifteen 2 and 3-story buildings totaling 246,611 net rentable square feet completed in 1998 on a 15.30 gross acre site featuring two resort-style pools. The units are a mix of one, two and three bedrooms with seven floor plans, detailed in the table below:

Unit	Number	Beds	Baths	SF
Handel	48	1	1	729
Mozart	33	2	1	1240
Mahler	55	2	2	1069
Schubert	22	2	1	1142
Beethoven	11	2	1	915
Bach	32	2	2	1022
Chopin	33	3	2	1262

The complex was converted to condominiums in 2005 under an agreement that stipulates to slightly smaller unit sizes, resulting in a net rentable square foot total of 237,476 for the project. The units are individually metered for electricity. 

The seller was Hartford Investment Management Company, who had previously acquired the property in 2010 when then-owner Graystar defaulted on a purchase money note secured by the property and transferred ownership to Hartford, deed-in-lieu. The previous arms-length sale of Symphony was in January of 2007, when the Greystar bought the complex for less than it's begin acquired for now: $34.164m or $146,000 per unit with $7.864m down and the $26.3m new debt which caused Greystar to give up Symphony less than five years later.

To Contact the Author:

Paul Dionne - pdionne@vizzda.com

One Day after $165.8m Portfolio Sale: $75m in Sales and a $60m Notice

By: Paul Dionne | Vizzda 

Verano Townhomes Leasing Office

Before the ink was dry on PB Bell’s acquisition of seven multifamily assets from the Bethany Kingdom I portfolio, an additional 775 units in two assets were sold for a combined $75.5m and a third, 856-unit asset was noticed for trustee sale on a $59.4m outstanding debt. The assets in question are the 360-unit Verrano Townhomes which sold for $49m, the 415-unit Colonnade Apartments which sold for $25.5m and the Saratoga Ridge Apartments, which were noticed for trustee sale by an affiliate of AIG Life Insurance Company. The three deals today bring the total amount of economic activity in the 100+ unit multifamily space to $464.8m since the beginning of last week. 

Verano Townhomes is located north of the northeast corner of 44^th Street and Ray Road in Phoenix. Its 360 units comprise thirty residential buildings totaling 435,840 ft² on a 22.23 acre site. It was built in 1996 and substantially renovated in 2006. It was previously acquired by Cornerstone Real Estate Advisors in July of 2011 for $44.55m or $123,750 per unit with $25m in new debt with People’s United Bank, maturing September 1^st, 2016. Yesterday, ColRich Multifamily acquired Verrano Townhomes from Cornerstone for $49m or $136,111 per unit with $10.19m down and $39.2m in new agency debt underwritten by CBRE Multifamily Capital and assigned to Fannie Mae at origination.

The Colonnade Leasing Office

The Colonnade is located east of the northeast corner of State Route 51 and Camelback Road in Phoenix. As mentioned above, it has 415 units in twenty four 3-story buildings built in 1970 and 1974 on a 9.57 acre site. There are 196 studios, 236 one-bedroom units and fifty two-bedroom units, all of which are master metered. Steve Wasserman of Gelt, Inc. previously acquired the property in two sales in 2011: the 219-unit Fern Tree Apartments for $9.3m and the 197-unit Colonnade Gardens for $6.95m. Gelt sold its interest in the property yesterday to a tenant-in-common group comprised of affiliates of Mica Creek-Sagamore Capital Partners who paid $3.1m in cash and financed the remainder of the purchase price with $22.4m new agency debt originated by Greystar and assigned to Fannie Mae at origination.

Saratoga Ridge Apartments is located west of the northwest corner of 16^th Street and Bell Road in Phoenix. It is one of the largest apartment complexes in the valley, with 856 units in seventy four two-and-three story buildings totaling 732,406 ft². The complex was built in 1984 on a 38.37 acre site and features four pools. Pacific Coast Capital Partners previously acquired this complex in September of 2004 for $42.65m or $49,825 per unit. After investing another $9.35m in rehabilitating the property, PCCP sold to Greystar in June of 2007 for $70.4m or $82,243 per unit, $14.214m of which was tendered as cash and $59.4m of which was secured under a deed of trust with Variable Annuity Life Insurance Company, an affiliate of AIG. Variable Annuity served notice to Greystar that it was in default of the $59.4m loan—stipulated to have an unpaid balance of $58,320,577—yesterday.

To Contact the Author:

Paul Dionne – pdionne@vizzda.com

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

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

Mercury Investment Unloads Mission Springs Apartments for $23m

 VIZZDA—November 23^rd, 2012 — Adrian Goldstein of Gelt, Inc. and Warren Breslow of Goldrich & Kest have acquired Mission Springs Apartments in Tempe for $23m or $75,163.39 per unit. The purchase was financed with $17m new multifamily debt originated by CBRE Multifamily Capital and assigned to Fannie Mae.

The 306-unit complex is 97% occupied and consists of 27 one and two story buildings totaling 227,481 ft². The master-metered complex sits on 13.28 acres and was completed in 1987. Allison Shelton Real Estate Services will continue in its capacity as property manager. The unit mix is as follows:

Units	Bedrooms	Bathrooms	Average ft2	Base Rent
72	0	1	506 ft2	$664
80	1	1	635 ft2	$715
90	2	2	804 ft2	$831
64	2	2	884 ft2	$841

The most recent non-distressed sale of Mission Springs took place on March 8^th, 2006 when Fairfield Residential acquired the property for $28.85m with $8,947,768 down and $21.2m new debt with Nationwide Life Insurance Company. Nationwide issued a notice of trustee sale for the property on August 10^th, 2009 and it reverted to Nationwide on November 20^th, 2009 with a $13.4m credit bid.

Abbot Apter of Mercury Investments paid $15.4m or $50,326.79 per unit on July 29^th, 2010, with $3.9m down and $11.5m new debt with Aetna Life Insurance Company. A $23m sales price represents a 21.9% annualized rate of return.

By:

Paul Dionne

Director of Analytics

Vizzda.com