Broadstone Desert Horizon Purchased By Waterton Residential

VIZZDA--August 16th, 2012 -- Broadstone Desert Horizon–a 514-unit apartment complex at 16636 N 58th St–was sold by a joint-venture between Alliance Residential and AEW Capital Management for $48.25M or $93,871 per door.  Waterton Residential paid $13.75M in cash and secured a $34.5M Fannie Mae loan originated through CWCapital. 

The two-story apartment complex consists of 39 structures built between 1986 and 1988 on 22.87 acres, zoned R-3. The unit mix includes 10 models available ranging from 697 SF to 1,145 SF offered between $670-$1,295 per month. There is considerable variability in rents between models due to a the variety of amenities and stages of refurbishment. 

The joint venture between Alliance Residential and AEW Capital Management acquired the property December 26th, 2006 from DRA Advisors of New York as two of fifteen multifamily properties in three states:

• “La Entrada” -- 130 units built 1988 -- was purchased for $15,668,000 or $120,523 per door with $8.0M down and $10,830,900 total debt, including: $5,268,900 Freddie Mac loan originated by HSBC Bank and the assumption of a $5,562,000 Freddie Mac loan, itself in two notes: a $4,449,600 fixed rate loan and a $1,112,400 variable rate loan – both originated October 14th, 2004 also through HSBC with DRA Advisors. 
• “Arabian Trails” -- 384 units built 1986-87 -- was also purchased 12/26/06, for $44,365,000 or $115,533 per door with $8.0M down and $29,623,900 total debt: a new $10,600,900 Freddie Mac loan originated by HSBC and the assumption of $19,023,000 existing debt with Freddie Mac in two notes: $15,218,400 fixed rate and $3,804,600 variable rate – again originated 10/14/04 through HSBC Bank. 

Marc Swerdlow, President of Waterton Residential, closed the deal while Alison Husid, Portfolio Manager for AEW Capital Management, signed documents for the Alliance Residential/AEW Capital Management joint-venture.

By:

Edward Moore

Director of Research

emoore@vizzda.com

Waterton Residential Acquires Andante Apartments

VIZZDA--July 31st, 2012 -- Chicago-based Waterton Residential has purchased Andante Apartments for $61.3m or $106,432 per door. Located at 15801 S. 48th St in Phoenix or southwest of the I-10 & Chandler Blvd, the 576 Unit complex totals thirty two two & three story buildings totaling roughly 509k SF constructed in phases from 1999 to 2001 on 25.51 acres. Andante features 3 pools, gates, and 885 average unit SF. The unit mix is 408 1/1 and 168 2/2.

Waterton acquired the Andante with $1M down and $43.35m new debt with CBRE Multifamily Capital, assigned to Fannie Mae following origination. Per Waterton’s website, this marks their first Arizona purchase. The property was sold by JP Morgan Chase’s Strategic Property Fund, who previously acquired Andante August 12th, 2005 for $58.76M or $102,014 per door. HSBC Realty Credit loaned $26,032,000 of debt on the property on August 8th, 2008 which matures August 1st, 2015. SNK Development originally constructed the property.

For more information on this and other commercial real estate intelligence from VIZZDA, follow us on Twitter, 'like' us on Facebook, sign in or  join our 30-day free trial and beta test!

BY:
Hadden Schifman
Managing Director

Hadden@VIZZDA.com

Six Phoenix Area Apartment Complexes Purchased For $179.25M

VIZZDA- JULY 5TH, 2012 -- DRA Advisors Acquired 15 apartment complexes for $477m from United Dominion Realty (UDR).  The portfolio totals 4,931 units located in the following four markets: Phoenix, AZ (six properties); Jacksonville, FL (five properties); Dallas, TX (two properties); Richmond, VA (two properties).

The six Phoenix-area properties total 1,744 units and were purchased for a combined $179.25m ($102,781/door). HSBC underwrote $125m in six multifamily debt instruments, which mature July 1^st, 2019 and were assigned to Freddie Mac following origination (70% LTV).  The six properties are as follows:

·       Lumiere Chandler Condos—248 units at 1100 N Priest Drive in Chandler developed by UDR in 1996 and renovated in 2007. Purchased for $28m ($112.9k/door) and secured by an $18.5m multifamily deed of trust (66% LTV).

·       Residences at Stadium Village—382 units at 16845 N Stadium Way in Tempe developed by UDR in 2009. Purchased for $45m ($117.8k/door) and secured by a $25.75m multifamily deed of trust (57% LTV).

·       Finisterra Apartments—356 units at 1250 W Grove Parkway in Tempe developed by UDR in 1995 and completed in 1996. Purchased for $35.35m ($99k/door) and secured by a $25.75m multifamily deed of trust (73% LTV).

·       Sierra Foothills Apartments—322 units at 13601 S 44^th Street in Phoenix developed by UDR in 1998 and completed in 1999. Purchased for $27m ($83.85k/door) and secured by a $23.25m multifamily deed of trust (86% LTV).

·       Waterford At Peoria—200 units at 14109 N 83^rd Avenue in Peoria purchased by UDR following development by a third party in 2008.  Purchased by DRA for $22m ($110k/door) and secured by a $14.5m multifamily deed of trust (66% LTV).

·       Sierra Canyon Apartments—236 units at 17500 N 67^th Avenue in Glendale developed by UDR in 1998 and completed in 2000. Purchased for $22m ($93.2k/door) and secured by a $17.25m multifamily deed of trust (78% LTV).

Per DRA’s website, this purchase marks the first multifamily acquisition by DRA in the Phoenix market and represents the most recent addition to DRA’s 52k unit national multifamily portfolio. For UDR, this sale represents their exit from the Arizona, Florida and Virginia markets. Milestone has been contracted to provide property management. This disposition was initially reported in an April 4^th 2012 SEC Filing and press release filed by UDR.

For more information on this and other commercial real estate intelligence from VIZZDA, follow us on Twitter, 'like' us on Facebook, sign in or  join our 30-day free trial and beta test!

BY:
Hadden Schifman
Managing Director

Hadden@VIZZDA.com