TruAmerica Multifamily, Berkshire Group Pay $35M for Avenue 25 Apartments in Phoenix; Security Properties Buys Mesa M-F Asset
- Jul 27, 2014
In a $35.4 million deal, TruAmerica Multifamily and an affiliate of Berkshire Group have acquired Avenue 25 Apartments in Phoenix.
Comprising 254 units in 19 buildings, Avenue 25 features one-, two- and three-bedroom layouts. Amenities include an electric car-charging station, recreation and fitness center, pool area, a dog park and a business center. The asset has high visibility along Interstate 17 and is convenient to the U.S. 101-Interstate 17 interchange. Financing for the off-market transaction was provided by $24.78 million in pre-stabilization debt from by Capital One Commercial Bank.
“We are pleased to add Avenue 25 Apartments to our portfolio and acquire an attractive asset alongside a high-quality partner,” said Eric Draeger, Senior Vice President, Head of Equity & Debt Transactions for Berkshire. “We are excited about prospects for the Phoenix market given the turnaround in its fundamentals. We will continue to seek opportunities in the region, which is an area of focus for our investment funds.” The property’s new co-owner, TruAmerica Multifamily, is a company formed last year by Robert Hart, the former CEO of Kennedy Wilson Multifamily Management Group, and Guardian Life Insurance Co. of America,
In other multi-family transaction news, Sonora Canyon Venture L.L.C., an affiliate of Seattle-based Security Properties Inc., recently acquired the 388-unit Sonora Canyon complex in Mesa for $30 million, or $77,320 per unit. Business Real Estate Weekly of Arizona reports that the seller was LSREF2 Oreo L.L.C., an affiliate of Lone Star Funds. Completed in 1985, the complex was acquired by Lone Star as part of a $1.2 billion portfolio deal, which included apartment projects, industrial buildings, hotels and land.
Prudential Mortgage Capital Co. L.L.C. provided $25 million in financing for the acquisition, which was brokered by Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch of CBRE Group Inc.’s Phoenix office. The acquisition of the Sonora Canyon complex increases Security Properties’ multi-family portfolio in Arizona to 1,418 units.
Image Courtesy of Sonora Canyon , through RentCafe.