Continental, GTIS Sell 2 Communities
CBRE brokered the sale of the Arizona property, while JLL handled the Colorado transaction.
Canyon Reserve at the Ranch. Image courtesy of Continental Realty Assets Ltd.
Continental Realty Assets Ltd. and GTIS Partners have completed their joint venture together by selling two communities located in Arizona and Colorado. The partners sold San Palmas Apartments in Chandler, Ariz., and Canyon Reserve at the Ranch in Westminster, Colo., to qualified institutional buyers for undisclosed prices. However, Yardi Matrix data shows that Canyon Reserve was sold to Crow Holdings for $93.5 million. CBRE brokered the sale of San Palmas, while JLL brokered the Canyon Reserve transaction.
Continental Realty Assets, a subsidiary of Continental Realty Group, and GTIS Partners acquired Canyon Reserve at the Ranch in August 2017 for $48.9 million, according to Yardi Matrix data. The 256-unit community was built in 1984 and offers one- and two-bedroom units ranging from 744 to 1,034 square feet. The joint venture partners invested nearly $2 million in common area and unit interior renovations in nearly a third of the units.
The companies worked together again in February 2018 when they acquired San Palmas Apartments for $43.2 million, according to Yardi Matrix data. The Chandler community was built in 1998 and offers 240 units in one-, two- and three-bedroom units ranging from 830 to 1,438 square feet. The previous owners invested nearly $4 million into improving the community’s common areas, amenities, and unit upgrades for more than half of the units.
The value-add strategy has led to near full occupancy for both communities. San Palmas Apartments is 96 percent occupied, while Canyon Reserve is 95 percent occupied.
SELLING EARLIER THAN EXPECTED
David Snyder, president of Continental Realty Group, said in prepared remarks that the joint venture partners improved both the communities through exterior, common area and unit interior upgrade programs. David Pahl, managing director at GTIS, said in prepared remarks that Continental Realty Assets was able to deliver the renovations on time and on budget, allowing the partnership to sell the communities earlier than originally planned.
Besides its partnership with Continental Realty Assets, GTIS Partners has worked with other developers for Colorado projects. The firm worked with Southern Land Co. to develop a mixed-use property in Boulder, Colo., which was eventually sold for $151.3 million in March 2021.
