New Entrant to the Phoenix Market Buys Chandler Multifamily

By: Paul Dionne | Vizzda.com

Oregon Pacific Investment & Development Company (OPID) of Portland, Oregon has completed the acquisition of Pinnacle Creek Apartment Homes in Chandler for $33.3m. The seller was a joint venture between Essex Property Trust as successor-by-merger to BRE Properties and Northwestern Mutual Life—which financed the prior land acquisition and development of the property. The sale was structured as a 1031 exchange and financed with $22.712m in new debt with CBRE Multifamily Capital, assigned at origination to Fannie Mae. OPID tendered the balance of the purchase price as cash.

The 252-unit apartment complex is located east of the northeast corner of Alma School and Queen Creek Roads. It is comprised of nineteen 2-story buildings totaling 263,460 ft² built in 1999 on 16.89 acres. The property features the following unit mix: 

Number of Units	Beds	Baths	SF	Base Rent	Base Rent PSF	Potential Base Rental Income
56	1	1	767	$802	$1.05	$44,912
28	1	1	814	$855	$1.05	$23,940
68	2	2	1087	$1,007	$0.93	$68,476
40	2	2	1206	$1,105	$0.92	$44,200
20	2	2	1254	$1,174	$0.94	$23,480
40	3	2	1262	$1,092	$0.87	$43,680
					Total	$248,688

The aforementioned joint venture acquired the property as vacant land from Bradley Wilde for $2.05m in April of 1999. Northwestern Mutual committed $10,681,202 in debt for the project, which was slated to mature June 15^th, 2011. The debt was repaid and the security interest released on May 20^th, 2011. BRE Properties announced their merger with Essex Property Trust on April 2^nd, 2014. The current transfer was administered by First American Exchange Company.

To Contact the Author:

Paul Dionne – pdionne@vizzda.com

Arcadia Cove Apartments sells for $40.725m

Vizzda – June 18, 2013 – The Arcadia Cove Apartments sold on Friday for $40.725m or $94,271 per door with $700k down per affidavit and $35.0m new debt with HSBC Bank. The seller entity was a joint venture between JP Morgan Investments and BRE Properties and the buyer was The Bascom Group. Constance B Moore, president of BRE Properties, and Glenn R Daiutolo, vice president with The Bascom Group, closed the deal.

The Arcadia Cove Apartments is a 432 unit two and three-story apartment complex of twenty-seven buildings built in 1995 on 17.94 acres zoned R-3A. It is located north of the northwest corner of 44^th Street and McDowell Road at 2252 N 44^th St in Phoenix. The apartments total approximately 380,600 ft² in a mix of 1, 2 and 3 bedroom units.

BRE Properties acquired the apartment complex from Picerne Development on September 18, 1996 for $22,180,099 or $51,342 per door with $22.5m down per affidavit and no debt. On July 11, 2007 BRE Properties sold the apartments for $44.2m to the current selling entity. BRE Properties’ third quarter 2007 SEC filing reveals that they had sold the apartments to a joint venture with JP Morgan Investments in which they [BRE Properties, Inc] had retained a 15% stake in the apartments and were to manage the property; the apartments had been valued at $52m at that time.

Edward Moore
Director of Research

emoore@vizzda.com
www.vizzda.com