RK Properties Acquires Northern Greens Apartments in Glendale

By: Paul Dionne | Vizzda.com 

Northern Greens Apartments--a 420-unit complex northwest of the intersection of 61st and Northern Avenues--was sold by Principal Real Estate Investors out of Des Moines, Iowa for $21.2m or $50,476 per unit. The buyer was William Rance King, Jr. of RK Properties, a Long Beach, California-based multifamily investor. The transaction was financed with $11.75m in new debt with BB&T Real Estate Funding. 

Northern Greens is comprised of fourteen 3-story buildings and a clubhouse totaling 300,886 ft2. The property was built in 1988 on 17.31 acres of R-4 zoning. It is similar in size and quality to Sierra Vista, which sold earlier this week for $23.825m. The property has the following unit mix:

Number of Units	Bedrooms x Baths	Square Feet	Asking Rent
210	1 x 1	600	$585
105	1 + Den x 2	800	$675
105	2 x 2	900	$795

The property was previously acquired by Heitman Capital in 2006 for $27.1m or $64,523 per unit. In 2007, Heitman levered the property up with $20.1m in new construction debt with Principal Real Estate Investors, set to mature on March 1st, 2010. In June of 2010, Heitman deeded the property to Principal in exchange for release of their obligation to repay the loan. Principal refinanced the property several times with debt issued by its affiliates within the Principal Group, the last of which was released with the current sale.

The Painted Trails Apartments sell for $25.75m

Vizzda – June 20, 2013 – The Painted Trails Apartments sold Wednesday for $25.75m or $131,377 per door with $10.5m down and $15.25m debt with Bank of America. The seller is Jeff Nielson of Wasatch Commercial Management and the buyer is William R King of RK Properties.

The Painted Trails Apartments is a 196 unit two and three story apartment complex of eleven buildings built in 2007 on 12.99 acres zoned MF/M. It is located east of the southeast corner of Recker and Pecos Rds at 4255 East Pecos Rd in Gilbert. The complex contains a mix of 1, 2 and 3 bedroom apartments totaling 187,580 ft². The property is individually metered for electricity.

Wasatch Commercial Management previously acquired the Painted Trails apartments on November 25, 2009 from Fairfield Residential for $15.68m or $80.0k per door with $5.5m down and $10.0m debt with US Bank. $1.9 of this prior sale price was attributed to personalty. Wasatch had acquired this property tennancy-in-common with five entities and on August 2, 2010 they consolidated this ownership interest into one entity coincidentally with the issuance of a new debt on the property: a $10.4m Freddie Mac loan (FHLMC) originated with Deutsche Bank, maturing September 1, 2017. The debt was securitized (CMBS) in 2011 and released with the June 19, 2013 sale.

Edward Moore
Director of Research

emoore@vizzda.com
www.vizzda.com