Phoenix-Area Affordable Property Changes Hands
Atlantic Development & Investment sold the 184-unit asset in a 1031 exchange for nearly $23 million. The Canadian Imperial Bank of Commerce provided acquisition financing.
Atlantic Development & Investment has sold Sonora Vista, a 184-unit affordable community near Phoenix, to Dominium for $22.5 million, according to public records. The sale was a 1031 tax-deferred exchange, per Yardi Matrix data. The buyer, Dominium, financed the acquisition with funds from a three-year, $24 million line of credit originated by the Canadian Imperial Bank of Commerce.
The new owner has begun work converting the property, now rebranded as HUE97, to a market-rate community. Dominium is investing $4 million in capital improvements, with plans to add a community kitchen, a dog park and additional green space to the asset’s 4.1 acres.
Located at 9736 E. Balsam Ave. in Mesa, Ariz., the community is roughly 30 miles east of downtown Phoenix. Three miles from Superstition Freeway, the property is a short drive from several retail centers. The Phoenix-Mesa Gateway Airport is approximately 11 miles south of the asset.
The community contains a mix of two-, three- and four-bedroom units, with floorplans ranging from 1,125 to 1,550 square feet. Existing amenities include two swimming pools, laundry facilities, two clubhouses, a playground and around 200 parking spaces. As of December 2018, the asset was 88 percent occupied, according to Yardi Matrix.
Dominium maintains a nationwide portfolio of approximately 30,000 owned or managed units. In addition, the firm is currently developing nearly 1,800 apartments, including 362 affordable or age-restricted units in St. Paul, Minn.
Image courtesy of Yardi Matrix