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

The Pavilions on Central Apartments sell for ~$47m

VIZZDA – June 26, 2013 – The Pavilions on Central were sold on Monday by a joint venture between Gray Development of Phoenix and The Reliant Group of San Francisco to Crow Family Holdings of Dallas for $46,918,720 or $184,719 per door. Caskie Collet, chief operating officer of The Reliant Group, closed the deal. Crow Family Holdings is a family office charged with managing the wealth of the late real estate developer, Trammel Crow. 

The Pavilions on Central is a located north of the northwest corner of Central Ave and Indian School Rd at 1 West Campbell Ave in Phoenix. It is a 254-unit “Class A” three-story apartment complex of eighteen buildings built in 2001 on 6.76 acres. The Pavilions features a mix of 1, 2 and 3 bedroom units totaling 281,619 rentable square feet in nine different product types with various amenities. The buildings feature two levels of living space over ground floor garages – each unit has a garage with washer and dryer. Units are individually metered for electricity.

A Gray Development—in a joint venture with MJ Olson Investments and Joseph E Meyer—sold the land for the pavilions to a joint venture between itself and Northwestern Mutual Life Inurance on September 7^th, 1999 for $3,614,850 or $10.36 per ft², financed with $20.1m in new debt with Northwestern Mutual. This debt was modified on October 10, 2008 and on January 9, 2009 each time to extend the maturity date. On April 21, 2010 ownership of the Pavilions was transferred to the Gray Development and Reliant Group joint venture with a new HUD loan of $21.452m originated by Red Mortgage Capital.

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