The Monte Viejo Apartments in North Phoenix Sell for $58.5 Million

Area Map

Equity Residential sold the 480-unit Monte Viejo Apartments Friday for $58.55 million, or $122,000 per unit. Salt Lake City-based buyer Bridge Investment Group funded the sale with a Freddie Mac loan of nearly $44 million.

The Monte Viejo Apartments stand just southwest of the 101 freeway and Cave Creek Road. A shopping center with Costco anchor is located just across the street, with the Coyote Basin Park further down Beardsley Road.

Vizzda subscribers: click here for the full report.

Not a Vizzda subscriber? Join now to get the fastest and most accurate CRE data in the valley.

           

Arboretum at South Mountain Apartment Complex Sells for $45.5 Million

Map area

California-based KB Investment Development purchased the 312-unit Arboretum at South Mountain apartment complex yesterday for $45.5 million. The sale was funded by a loan of nearly $32 million with Hunt Mortgage Group.

The Arboretum at South Mountain consists of thirteen three-story buildings near the northwest corner of the I-10 and Chandler Boulevard. Renovated in 2007, the property includes one, two, and three bedroom floorplans, in-unit washers and dryers, and gated access.

Vizzda subscribers: click here for the full report.

Not a Vizzda subscriber? Join now to get the fastest & most accurate CRE data in the valley. Click here for more details.

        

Simpson Housing Purchases The Residences at Camelback for nearly $94 Million

Note: image taken prior to completion of improvements

The Residences at Camelback sold to Denver-based Simpson Housing yesterday for $93,912,000, or $301,000 per unit. JLB Partners sold the property just over one year after opening. A new loan of $52 million with Wells Fargo Bank financed the sale.

This 312-unit apartment complex consists of nearly 357,000 square feet of space with floorplans of one, two, and three bedrooms. It stands near the southwest corner of 44th Street and Camelback Road. A parking structure, health club, and one pool are included on the property.

Vizzda subscribers: click here for the full report.

Not a Vizzda subscriber? Join now to get the fastest and most accurate CRE data in the valley. Click here for more details.

        

Crescent Communities Takes Majority Stake in Scottsdale Quarter Multi-family Site

VIZZDA--November 20th, 2013 -- An entity controlled by North Carolina-based multi-family developer Crescent Communities paid $9.25m--nearly $75 per square foot--for Phase III A of Scottsdale Quarter. The seller, Glimcher Realty Trust, will retain a minority stake in the acquiring entity. The site is planned for The Residences at Scottsdale Quarter--a 275-unit luxury apartment complex that will feature two 6-story towers with roughly 22k square feet of ground-floor retail, an elevated resort-style pool and below-grade parking. The complex will be comprised of 43 studio, 175 one-bedroom and 57 two-bedroom apartments totaling 263,049 net rentable square feet.

Glimcher previously acquired fee interest in Phase III--an 8.95-acre graded parcel along the eastern span of Scottsdale Quarter--on October 15th, 2010 in three concurrent transactions for total consideration of $25.45m or about $65 per square foot. This transaction was a buy-out of the majority tenant-in-common interest, a joint-venture between The Wolff Company and ACC Homes, and in addition to assuming the existing $12.5m senior debt with Washington Trust Bank, Glimcher placed another $3.5m in debt on the property with its former majority shareholder.

Starwood Hotels, a tenant in the office portion of Scottsdale Quarter, placed a right of first refusal with respect to hotel development on the property commencing February 9th, 2011 and expiring February 29th, 2027 with two 5-year options to extend. Following release of the junior note on November 7th, 2011, US Bank issued $15m in new debt on the property in early December 2011. The new Crescent/Glimcher venture secured $45.525m in new construction debt with Regions Bank comprised of a $43.625m multi-family development note and an $1.9m retail development note.

By:
Paul Dionne
Director of Analytics
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.

Subscribe to Vizzda for more timely, accurate and actionable data on this and many other commercial properties.

Edward Moore
Director of Research

emoore@vizzda.com
www.vizzda.com

Greystar Acquires the Via Ventura Apartments in Scottsdale for $36.5m

VIZZDA—May 21^st, 2013 — Greystar continues to acquire and Equity Residential  (EQR) continues to dispose of multi-family assets in Greater Phoenix, even after the former’s co-venture with Goldman Sachs closed its twenty seven-property portfolio sale and the latter completed its $11b acquisition of Archstone Enterprises. Acting through a non-traded REIT affiliate, Greystar Equity Partners VII, Joshua Carper and Robert Faith purchased the 328-unit Via Ventura Apartments from EQR for $36.5m or $111,280.49 per unit.

The 2-story complex is comprised of twenty-three buildings totaling 232,288 ft² built as three separate developments beginning in 1977 with seven buildings totaling 70,307 ft², followed by eleven buildings totaling 166,301 ft² in 1979 and culminating with five buildings totaling 45,680 ft² in 1985. It is located at the southwest corner of Hayden Road and Via De Ventura in the McCormick Ranch area of Scottsdale. The units are individually metered for electricity and master-metered for water, sewer and trash—though the associated fees are passed-on to tenants, pro-rata.

Unlike many of the properties the company has sold of late, Via Ventura was not acquired pursuant to EQR’s 1999 merger with Scottsdale-based Evans Withycombe Residential. Instead, EQR purchased the property on July 18^th, 1994 from Centennial Properties for $14,747,163 or $44,930.57 per unit. While the acquisition was cash-only, the property was later encumbered under an existing $136m deed of trust with Lasalle Bank. This debt was released and replaced with a cross-collateralized term note with Wells Fargo in the principle amount of $550m, which was itself partially released with the current sale.

Ignoring operations, the $36.5m sale price represents an 147.31% absolute rate of return and 7.82% on an annualized basis. Greystar paid $9.4m in cash and secured an additional $27.1m in agency debt with Prudential Multi-family Capital. The note was assigned to Fannie Mae at origination and though no maturity is listed in recorded documents, it is uncommon for commercial agency debt to bear maturity greater than ten years.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Equity Residential Continues Phoenix Divestiture, Sells Sycamore Creek to Henderson Global Investors

VIZZDA—May 8^th, 2013 — Equity Residential (EQR) has sold their third major multi-family development for the quarter—Scottsdale’s 350-unit Sycamore Creek Apartments—to representatives of Henderson Global Investors for $37.7m or $107,174.28 per unit. This sale marks the sixteenth disposition by EQR since announcing plans to acquire the assets of Archstone Enterprises from Lehman Brothers Holdings Inc. in the fourth quarter of 2012. Henderson plans several capital improvements for the property, including upgrades of the pool and clubhouse area.

Henderson put $400k down on the property and secured multi-family housing revenue bond financing issued by the Maricopa County Industrial Development Authority (MCIDA), underwritten by Merrill Lynch with Wilmington Trust as trustee. While the interest paid by these bonds is not tax-exempt, the developer has agreed to allocate twenty percent of the dwelling units to low-income housing for one year following close in exchange for offsetting tax credits. Henderson reports that is finances roughly two thirds of its multi-family acquisition and development in a similar manner.

In addition to its financing arrangement with the MCIDA, Henderson received an undisclosed amount through a second position deed of trust executed under the terms of the 2002 ISDA Master Agreement and including a Multi-Currency Cross Border Schedule, to mitigate foreign exchange risk and a Credit Support Annex, to mitigate derivative counter-party risk. EQR previously acquired the property from successors-by-merger to the original developers in an all-cash transaction for $16.2m or $46,285 per unit. The twenty-two, individually-metered, 2-story buildings were built east of the southeast corner of Invergordon and Thomas Roads in 1996 in 16.58 acres, zoned R-5.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Oliver McMillan Completes Acquisition of the Lofts at Hayden Ferry

Future Site of the Lofts at Hayden Ferry

VIZZDA—April 16^th, 2013 — A joint-venture formed by Sunbelt Holdings and Rockpoint Group of Dallas, TX has sold a 3.695 acre parcel within the Hayden Ferry development for $5.85m or $36.30 per ft². The buyer is Oliver McMillan through its CFO and Secretary, William Persky. Oliver McMillan is a luxury multi-family and mixed-use developer founded by Morgan Dene Oliver and James McMillan and based in San Diego. The group financed the transaction with a $2.925m promissory note and a term loan in the same amount with Bank of America. No additional construction debt was located with the sale, though should additional sums be made available, Vizzda will update this post to accurately reflect the state of project financing.

The site is planned for “The Lofts at Hayden Ferry”, a 264-unit apartment complex in one 4-story building totaling 327,182 ft².  The development will also feature fifth-floor loft space in select units and a 2-story sub-grade parking facility containing 459 parking spaces and totaling 197,633 ft² for a combined project square footage of 524,815 and a density unit per acre of 71.4. Despite the proximity of the site to Arizona State University’s Tempe Campus, planning documents associated with the parcel make no mention of dedicated student housing.

The proposed unit mix is as follows:

Number of Units	Bedrooms	Bathrooms	Average ft2
15	0	1	575
77	1	1	741.66
89	2	2	1120
26	3	2	1314
25	1 w/ Loft	1	867
32	2 w/ Loft	2	1358

Sunbelt Holdings and Rockpoint Group acquired the property from the now-defunct SunCor Development on September 15^th, 2010 for $250k or $1.55 per ft² as part of a $7,581,095 portfolio sale that included both raw land and improvements in several valley markets. While the prior sale price is likely depressed because of its inclusion in the larger portfolio—as well as the rapidly deteriorating financial condition of the seller—we calculate the annualized rate of return to be in the vicinity of 890% depending on carrying costs to the joint-venture, which are assumed to be nominal.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Acacia Creek Apartments in Scottsdale Sold for Nearly $40m

VIZZDA—February 19^th, 2013 — Another major multi-family asset has changed hands in the East Valley with Equity Residential’s (NYSE: EQR) sale of the Acacia Creek Apartments to Paul and Greg Merage of MIG Real Estate, a Newport Beach-based investor. This sale caps a week in which Equity Residential sold 1,231 units in four transactions totaling $148,149,311 or $120,348.75 per door.

The 304-unit complex is comprised of twenty 2-story buildings totaling 281,416 ft² on 14.19 acres, zoned R-5. It was constructed in several phases from 1988 to 1992. The property is located south of the southwest corner of Scottsdale Road and Shea Boulevard near Chaparral High School. The property manager, Alliance Residential, reports a 96% occupancy rate.

Equity Residential acquired the property pursuant to its $1.06b acquisition of Scottsdale-based multi-family developer, Evans Withycombe Residential, Inc., on April 30^th, 1999. While no sales price was listed at the time of transfer, Equity Residential did include the property as collateral for a $126,452,000 loan underwritten by Capri Capital, assigned at origination to Fannie Mae as part of their Delegated Underwriting and Servicing (DUS) program and maturing on August 1^st, 2009.

MIG Real Estate paid $1.5m in cash for the property and secured an additional $28.25m new debt with CBRE Multifamily Capital, which was assigned to Fannie Mae at origination. The sales price includes $91,200 in fixture and furniture costs for a per unit cost of $131,160.52. Paul Merage is the founder of Chef America which manufactured and distributed Hot Pockets® and Lean Pockets® before being sold to Nestle in 2002 for $2.6b.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Fernwood Manor Apartments Sold to Canadian Investor for $17.525m

VIZZDA—December 13^th, 2012 — Another major multi-family asset in the Southeast Valley changed hands this week as Nancy Swetnam and Patricia Conahan sold Fernwood Manor Apartments for $17.525m. The Buyer, Robert Petryk of Petwin America Corp, paid $4.825m cash for the property and secured $12.455m in financing through a 10-year multi-family loan with Prudential Mortgage Capital and assigned to Freddie Mac at origination.

The 252-unit complex is comprised of thirty 2-story buildings totaling 240,203 ft². Construction on the 11.77 acre site South of the Southwest corner of Rural Road and US-60 was completed in 1971. It is master-metered for utilities and is managed professionally managed by Greystar. Property management reports 98% occupancy. The unit-mix and base rents are as follows:

No. of Units	Beds	Baths	Average ft2	Base Rent
64	1	1	630	$729
88	2	1	942	$869
80	2	1	1016	$879
20	2	2	1016	$944

The property was acquired by an entity affiliated with the current sellers on October 2^nd, 1975 for $4.47m. Gordon Reeson paid $250k in cash and financed the remainder with new debts of $1,918,489 and $773,731 with First Federal Savings and Loan as well as $909,860 and $617,918, seller carry. Following a related entity quit-claim, the property was further encumbered with $2.75m debt with Citibank of Arizona. A subsequent related entity transfer resulted in another $2.45m encumbrance with the current lender. Johnson Capital issued a final loan in the original principal amount of $5.35m on June 3rd, 2003.

The $17.525m purchase prices represents a $69,534.65 per unit price and a ~7.8% annualized rate of return—ignoring cash flows—for the selling entity.

By:

Paul Dionne

Director of Analytics

Vizzda.com

Bascom Arizona Ventures Adds Two Major Distressed Multifamily Properties

VIZZDA—October 1^st, 2012 — Bascom Arizona Ventures, a wholly-owned subsidiary of the Bascom Group, has completed the purchase of Brookstone at the Foothills and Madera Point Apartments for a combined purchase price of $49.92m. The seller—AIG Global Investment Group through its representative Keith Honig—was the beneficiary named on two deeds of trust securing the properties during their prior acquisition by Redhill Realty.

Brookstone at the Foothills is a 528-unit complex comprised of 65 buildings totaling 473,659 ft² on 23.44 acres built in 1986 and zoned R-4. It is located West of the Northwest corner of the I-10 & Baseline Road at 4424 E Baseline Road in Phoenix. Redhill Realty acquired the property on December 18^th, 2006 for $46.8m or $88,636 per door. Redhill paid $13.5m cash for the property and secured $43.2m in financing with AIG Global Investment Group maturing January 1^st, 2012.

Redhill was served with a Notice of Trustee Sale on September 26^th, 2011 and it reverted to AIG with a $35m credit bid, after which it spent 8.5 months as REO. While the $35.57m—or $67,367.42 per door—sale price was in excess of the credit bid amount, it represents a 17.6% write down to the amount loaned and a 24% discount to the previous purchase price. Bascom paid $12,995,971 cash for the property and secured $25.85m new debt with Bank of America.

Madera Point is a 256-unit complex comprised of fourteen buildings totaling 179,296 ft² on 9.44 acres also built in 1986 and zoned R-4. It is located South of the Southeast corner of Dobson and Broadway Roads at 455 S Dobson Road in Mesa. Redhill acquired the property October 24^th, 2006 for $21.25m or $83,008 per door. Redhill paid $6,133,719 in cash at the time of purchase and placed $19.024m in debt with AIG Global Investment Group on the property. An additional $5,066,880 industrial development bond with the Bank of New York was assigned at purchase.

Redhill was served with a Notice of Trustee sale after defaulting on the senior AIG note January 14^th, 2011 and it reverted April 20^th, 2011 with a $16m credit bid. The property spent one year and five months as REO before being sold to Bascom for $14.35m or $56,054.68 per door. This sale price is significantly below the credit bid amount and represents a 24.5% write down to the amount loaned and a 32.5% discount to the prior purchase price. Bascom paid $8,607,547 cash for the property and secured $10.85m new debt, again with Bank of America, for a total outlay of $21,603,518 and new debt of $36.7m.

Centrado Apartments Sold for $12.35m to Jevan Capital

--> VIZZDA—September 13^th, 2012 — Centrado Apartments, a 180-unit complex located at 2045 E Broadway Road in Tempe was sold to Jason Buxbaum of Jevan Capital for $12.35m or $68,611.11 per door. Buxbaum paid $2.47m in cash for the property and secured $9.88m new debt with Northmarq Capital which matures October 1^st, 2019 and which was assigned at origination to Freddie Mac.

The seller, Jackob Anderson of Merchant Property Group, previously acquired the property on December 17^th, 2010 for $9.1m or $55,555 per door from the Royal Bank of Canada. The affidavit of value that recorded with the prior sale did not list a cash down payment; Financestream Inc. provided $9,109,181 in financing for the acquisition. This debt was released July 15^th, 2011 following issuance of a $5.7m new debt with Great West Life and Annuity Insurance Company issued April 27^th, 2011.

The 23-building complex totals 139,321 ft² per the Maricopa County Assessor. It was built in 1972 on 9.49 gross acres and zoned R-4. It is individually metered for electricity. The $12.35m sales price represents a ~20.4% annualized rate of return.

By:
Paul Dionne
Director of Analytics
pdionne@vizzda.com

Humberto Lopez Buys Broadstone at Queen Creek for $28m

VIZZDA—September 7^th, 2012 — Humberto Lopez, a Tucson-based multifamily investor and President of HSL Properties, has acquired the 264-unit Broadstone at Queen Creek for $28m or ~$106k per door. The property—located North of the Northeast corner of Ellsworth Loop and Ocotillo Road—consists of forty-eight 3-story buildings totaling 271,553 square feet and was built 2008 on 12.64 acres. It is the multifamily portion of the 68-acre, 318k square foot Cornerstone at Queen Creek mixed-use power center. The individually metered unit mix is as follows:

Units	Beds	Baths	SF	Rent Range
46	1	1	887	$790 - $1180
46	1	1	904	$815 - $1335
8	1	1	838	$860 - $1325
66	2	2	1132	$795 - $1295
66	2	2	1187	$825 - $1275
32	3	2	1378	$995 - $1530

The selling party, Robert Hutt of Alliance Residential, previously acquired the land on which the complex sits from Robert Mayhall of WDP on July 23^rd, 2007 for $5,783,809 with $34.423m in new financing from JP Morgan Chase. Mr. Lopez paid $9m cash down payment and secured $19m in new debt with National Bank of Arizona.

Archstone Purchases 7.8 Acres in Tempe, Plans 234-Unit Complex

VIZZDA--August 24th, 2012 -- A parcel of land totaling 7.8 acres at the Northwest corner of Scottsdale and Curry Roads was purchased by Archstone for $8,500,000 or $25.02 per square foot. 

The land is being sold by Bruce Shapiro of Arizona Partners and Martin Landis of Landwin Commercial Real Estate who foreclosed on the property on July 26th, 2011 with a $6,250,000 credit bid after acquiring the note from LNR Partners as special servicer for Bank of America CMBS on July 14th, 2011. 

New zoning was approved March 8th, 2012 for a 234 unit apartment complex or 396 bedrooms, consisting of ten two-story buildings, seven three-story buildings, and one four-story building. The primary access to the site will be west of Scottsdale Road on Curry Road. The site will have a lot coverage of 36% and 30 dwelling units per acre.

The site was previously zoned General Industrial and was occupied by a 79,705 SF neighborhood shopping center, which was mostly vacant prior to its demolition in the summer of 2012.

By:
Dan Alpers
Director of Planning and Municipal Solutions
dalpers@vizzda.com

Broadstone on Twelfth Purchased by Gelt Inc

VIZZDA – Aug 24, 2012 – a 150 unit apartment complex at 1212 E Bethany Home Rd was sold by a joint venture of Alliance Residential and AEW Capital Management for  $9.05M or $60,333 per door with $2.15M down and a $6.9M Freddie Mac loan through CBRE Capital Management  – with the deal recording August 23, 2012. The two-story apartment complex consists of 19 structures built in two phases: 1971 & 1984 on 4.85 acres zoned R-3A.

The unit mix (per CBRE broker flyer / pro forma link).

The joint venture between Alliance Residential and AEW Capital Management acquired the property December 26, 2006 from DRA Advisors of New York as one of fifteen multifamily properties, totaling 3,959 units, acquired at the end of 2006. 

The 150 unit “Posada Del Este” (now “Broadstone on Twelfth”) was purchased for $11,661,000 or $77,740 per door with $8.0M down and $8,271,900 total debt including the assumption of a $5,568,000 Freddie Mac Loan originated October 14, 2004 with HSBC Bank (for prior owners DRA Advisors of New York) and a new $ 2,703,900 Freddie Mac loan also originated with HSBC Bank, maturing November 1, 2012.

Alison L Husid (Portfolio Manager) of AEW Capital Management and Adrian Goldstein of Gelt Inc closed the deal. 

Vizzda blogged the sale of Broadstone Desert Horizon, similar in many respects, on August 17, 2012. 

By:
Edward Moore
Director of Research
emoore@vizzda.com

Hamilton Zanze Purchases The Arbors Apartments

VIZZDA -- August 13th, 2012 – A 200 unit apartment complex at 805 W Brown Street in Tempe was sold by AIMCO Apartments to Hamilton Zanze & Co for $12.2M or $61.0K per door. The 41 building apartment complex was built between 1959 and 1967 on 6.74 acres. The apartments were previously acquired by Winthrop Financial Associates on August 16th, 1993, with no sale price recorded. The property was encumbered with $3,168,047 debt with Lexington Mortgage Company. Winthrop Financial Associates was purchased by AIMCO on October 31st, 1997 with a reported aggregate purchase price of $253.5M. 

At the time of purchase Winthrop listed assets comprised of 8,175 units in 35 apartment communities. The Arbors--then the Grovetree Apartments--were sold to AIMCO on November 5th, 1997 for $7.0M or $35.0K per door, Winthrop’s remaining debt was released at that time. AIMCO is reported to have paid $116.1M in cash and incurred $120.0M debt in 33 mortgages for 20 years at 7.0% in the acquisition. This includes a $3,916,538 loan with GMAC Commercial Mortgage on “The Arbors”, released December 7th, 2009. The principles on the deal were John Bezzant, executive vice president of AIMCO, and Mark Hamilton, chief executive officer of Hamilton Zanze & Co.

BY:
Ed 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

Four Large Apartment Complexes Change Hands Friday, June 8th 2012

VIZZDA—June 11, 2012 -- Three apartment complexes were sold and one reverted to beneficiary in a trustee’s auction in the Greater Phoenix area last Friday. The properties ranged in size from 144 to 488 units and in sales price from $5.8m to $10.5m—totaling roughly $29.5m in transactions. They are as follows:

Metro Gardens Apartments—an 144 unit complex in 12 buildings totaling 100,415 SF east of the southeast corner of 35^th Avenue & Peoria—was auctioned by the law firm of Sherman & Howard with proceeds accruing to the benefit of Freddie Mac. The prior owner and Trustor of record, Edward Klugman of Arizona Progressive Apartments, acquired the property through a quit-claim on August 28^th, 2008 and encumbered the property with $6.331m debt issued by Johnson Capital and immediately assigned to the current beneficiary. The winning credit bid of $6,702,328 represents a per door price of $46,821.86.

Casa Verde Apartments—a 488 unit apartment complex in 34 buildings totaling 353,256 SF west of the northwest corner of 51^st Avenue & Indian School Road—was sold to John Safi of Safco Capital for $10.5m or $21,516 per door. The seller, Ron Zeff of Camel Partners, previously acquired the property from Glenn Toyoshima of HSL Properties August 28^th, 1997 for $5,762,500. The complex was built between 1983 and 1984 and features 84 2x2, 236 1x1 with two different floor plans & 48 studios, individually metered.

Lynwood Apartments—a 300 unit complex in 15 buildings totaling 291,978 SF west of the northwest corner of 51^st Avenue and I-10—was purchased by Liliana Stoianova for $6.5m or $21,666 per door. The property was purchased from the original developers, Joel & Gregory Fernebok of Harvey Property Management, who acquired the project from Charles Marion Heers on December 31, 1985. The new owners put $700k down and encumbered the property with two notes: $2.05m with RLS Capital and $3.75 with Bill Levine of Pacific Coach.

Copper Glen Apartments—a 288 unit complex in 25 buildings totaling 250,329 SF at the southeast corner of 35^th Avenue & Dunlap—was sold to Ehyan Caldwall of Vancouver, BC for $5.8m or $20,138.89 per door. This was a bank sale with Brian Griffin (EVP, Special Assets) of First Financial Bank, NA as seller. First Financial acquired the property through trustee’s auction on February 3^rd, 2011 with a $6m credit bid on $10m original outstanding debt issued to Larry LeSueur & John Alston when they purchased the property for $12.1m on August, 18^th, 2005. The property is comprised of 48 3x2 & 140 2x2 master metered apartments, built in 1973 on a 5 acre parcel.

For more information on these and other commercial real estate deals in Maricopa County, login to your VIZZDA account or sign up with VIZZDA today!

By:

Paul Dionne

Research Analyst

pdionne@vizzda.com

La Privada Sells To GE Asset Management

VIZZDA, June 1, 2012 -- La Privada – a 350 unit apartment complex at 10255 E Via Linda in Scottsdale – was sold May 30^th, 2012 by the ConAm Group of Companies to GE Asset Management for $45.6M or $130K per door. The two-story apartment complex consists of 39 structures built in 1985 on 36 acres. The complex features such amenities as two swimming pools, a tennis court, and putting green. 
There are 4 floor models available ranging from 867 to 1,608 SF which all feature wood-burning fireplaces and upgraded kitchens. ConAm acquired the property March 2^nd, 2009 for $32.0M or $91.5k per door from iStar Financial with $20.2M new debt with Freddie Mac originating through GEMSA Loan Services (a CBRE/GE Real Estate joint-venture) with the debt maturing 3/1/16. 
This debt was modified to $24.6M and assigned to Freddie Mac 12/16/10 and finally released 1/27/11. The buyer has put $20.3M down with $25.3M in financing with Fannie Mae originating with CBRE Multifamily Capital. CBRE is also reported to have brokered the deal.
By:

Edward Moore

Research Analyst

(480) 444-8436

emoore@vizzda.com

Phoenix Metro Sees $182M In Commercial Sales On May 11, 2012

VIZZDA, May 14, 2012 — The Phoenix Metropolitan Area experienced a high volume of commercial property sales on the Friday before Mother’s Day, with over $182m changing hands in six transactions.

The largest of these transactions was the sale of the Riverside Industrial Center—a mega-warehouse and distribution center of 1,205,821 and 377,180 square feet, the larger of which is currently leased by Amazon.com. Home Depot recently exercised an option to terminate their lease in the smaller of the two buildings. The sale was recorded as two transactions of $105.1m and $26.56m totaling $131.7m. The sellers, Jeffrey Kelter of KT Capital and Jonathan Tratt of Tratt Properties, previously acquired the property as unimproved land January 5, 2006 in two transactions totaling $5.9m.  The buyer is Scott Rector of the Black Creek Group of Denver.

Additionally, Scottsdale Gateway Apartments conveyed on Friday for $41m. The 611 unit complex at the northwest corner of Scottsdale and McKellips Roads was built between 1963 and 1972 in two phases of 124 and 486 units on 22.2 acres. Price per door is $67,103. The complex was previously acquired by the seller, John Bezzant of Aimco Apartments, in November of 1997 for $16.2m or $26,513 per door. The buyer is Danny Gabriel of ColRich Multifamily Investments of San Diego. The buyer put $10.875m down, incurred $6.775m new debt with Wells Fargo and assumed $16.8m CMBS debt with US Bank.

Finally, Elianto—2,382.23 net acres of undeveloped land zoned PC, or planned community—sold for $7.4m or $3,097 per acre. The parcel had been planned for three phases of residential development: Phase 1 was to total 1,745 units, Phase II was to total 1,198 units and Phase three remains unplanned. Robert Hummel of California and Sam Stern of Toronto, Canada were the buyers. The property was previously acquired as a Deed In Lieu of Foreclosure accruing to the benefit of Bank Midwest, a subsidiary of Dickenson Financial. The buyers incurred $8.4m new debt with the sale, issued by a consortium of individual investors.
By:      

Paul Dionne

Research Analyst

(202) 258-9508

pdionne@vizzda.com