JV Acquires $200M AZ Development
Optima and Principal Real Estate Investors have procured phases I and II of Optima Sonoran Village Scottsdale. The partnership plans to develop phase III, which will feature a seven-story tower offering 176 apartment homes.
By Jeffrey Steele
Glencoe, Ill.–based Optima Inc. has reinvested in the Optima Sonoran Village apartment community in Scottsdale, Ariz., through a partnership with Des Moines, Ia.-based Principal Real Estate Investors Inc. The partnership acquired Optima Sonoran Village Phases I and II for $200 million from an existing Optima-sponsored venture.
JLL brokered the equity for the deal.
In addition to acquiring the two existing phases, the new partnership plans to develop the capstone of the village, Optima Sonoran Village Phase III. This phase will feature a seven-story tower offering 176 apartment homes. It will provide the same look and feel of Phases I and II, as well as an exclusive resident rooftop amenity deck.
Among the amenities of Optima Sonoran Village are outdoor pools and spas, a dog park and walking paths. A 19,000-square-foot residents’ club will offer a membership-caliber fitness center, indoor pool and spa, steam room and saunas, indoor basketball court, racquetball court, party room and business center. Other noteworthy features include floor-to-ceiling windows, exclusive outdoor terraces for each residence and the vertical landscaping system that is a trademark of Optima.
Shared vision sought
“The most challenging obstacle to overcome for us was finding the right partner for this transaction given the many facets of Optima Sonoran Village,” Tara Hovey, president and chief operating officer of Optima Inc., told MHN. “We wanted to find a partner that shared our vision for the overall community and the experience to be delivered to our residents, and who would partner on both a 592-apartment home stabilized community and a 176-apartment home new development phase. We looked hard to find the right partner and were assisted in this effort by our team at JLL Capital Markets. We are fortunate to have found and partnered with Principal Real Estate Investors and are excited about what we will be able to achieve together at Optima Sonoran Village.”
Kevin Anderegg, managing director of Principal Real Estate Investors, reported his company welcomes the opportunity to partner with Optima.
“[That is] due to its vertically-integrated business model that created the unique opportunity that is Optima Sonoran Village,” he said. “And we look forward to adding to this distinctive community through the development of Phase III.”
Optima continues to expand its Greater Phoenix presence. First move-ins recently were welcomed at Optima’s newest condominium development, 7120 Optima Kierland in Scottsdale. “As is evidenced by our reinvestment in Optima Sonoran Village and our continuing investment in Optima Kierland, Optima has a long-term commitment to ongoing investment in the growing Greater Phoenix market,” Hovey said.