Phoenix—Transwestern has brokered the sale of The Canyons, a 629-unit community located at 19940 North 23rd Avenue in Phoenix. An entity formed by Alliance Residential Co. picked up the property for $50 million, or approximately $80,000 per unit. The property was sold by Denver-based Continental Realty Advisors, which purchased the property in 2010 for $45.5 million. CRA also infused $1.3 million of capital into the community, and boosted the occupancy rate from 63 percent in 2010 to 94 percent at the time of the transaction.
“Continental purchased The Canyons at a very difficult time in the Phoenix multifamily market,” says Transwestern vice president Jack Hannum, who along with vice president Bret Zinn and Financial Analyst John Drowns negotiated the transaction. “They made a great number of improvements in the community and management, and it showed in the occupancy increase.”
While Alliance Residential has previously developed and sold multifamily assets in the area, this was its first Phoenix-area purchase in nearly six years. According to Transwestern, Alliance is also developing 793 units in three communities through the Phoenix area.
The Canyons was built in two phases in 2004 and 2005 and features studio, one-, two-, three- and four-bedroom units ranging in size from 458 square feet to 1,166 square feet.
Beech Street closes $15.9M refinance for a Seattle-area seniors asset
Newcastle, Wash.—Beech Street Capital has closed a $15.9 million Fannie Mae conventional seniors housing loan to refinance Regency Newcastle, a 99-unit independent and assisted living community in Newcastle, Wash. The 2008-built asset is located within the Seattle metropolitan metro area and features an indoor pool, exercise room, and a library with a fireplace.
The borrower was Regency Pacific, a company with approximately 50 nursing, assisted living and retirement communities under ownership and/or management. The fixed-rate loan has a 10-year term, with 9.5 years yield maintenance, and a 30-year amortizing schedule.
NorthMarq arranges $22.1M mortgage with interest-only feature
Phoenix—Luke Donahue and John Kinser of NorthMarq’s Phoenix Regional office arranged acquisition financing of $22.1 million for Mountain Park Ranch Apartments. The Class A property consists of 240 multifamily units in 17, two-story residential buildings.
Financing was based on a 10-year term with two-years interest only followed by a 30-year amortization schedule. NorthMarq arranged this financing for the borrower, Tuscan Townhomes LLC, through its seller-servicer relationship with Freddie Mac.