Newly Completed Skywater at Town Lake Sells for $94 Million

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Lennar Multifamily's new Skywater at Town Lake mixed-use apartment complex sold Wednesday for $94.2 million, or just over $300,000 per unit. The Teachers' Retirement System of the State of Illinois are the new owners of the property, purchased care of real estate management firm Heitman. A $47.1 million note with Nationwide Life Insurance Company funded the transaction.

Skywater at Town Lake is located near the southeast corner of Hardy Drive and Rio Salado Parkway in Tempe, less than a mile from Arizona State University. It features an array of floorplans including studios, 1-3 bedrooms, lofts, and live/work units. A 155,000 square foot parking structure is included on the property, as well as two pools and a clubhouse. The 328-unit project completed construction earlier this year.

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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