Security Properties Expands Portfolio With $98M AZ Buy

By Corina Stef

Security Properties, a Seattle-based real estate investment firm, acquired a $97.5 million portfolio of four apartment communities located in Arizona from Starwood Capital Group. The sale comprises a total of 1,276 units and was backed up by an $84.8 million, 5-year loan financed by Freddie Mac, with maturity date in August 2022, public records show.

According to Yardi Matrix, the portfolio includes:

• Stillwater Apartments
• Canyon Creek Village Apartments
• Off Broadway Apartments

The 516-unit Stillwater apartment community is located at 7711 N. 51st Ave. in Glendale. Built in 1986, the property comprises 24 three-story buildings with 120 studios, 344 one-bedroom and 52 two-bedroom apartments with open living and dining areas, fully-equipped kitchens, swimming pool, indoor sports court, fitness center, playground, laundry facility and 635 parking spaces. Neighborhood amenities include retailers, restaurants, Manistee Ranch Park and Glen Lakes Golf Course. The community traded for $36 million.

Canyon Creek Village Apartments is situated at 17617 N. 9th St. in Phoenix. The 440-unit, 61-building property sits on 18.25 acres and includes 192 one-bedroom, 224 two-bedroom and 24 three-bedroom units with fully-equipped kitchens, walk-in closets and private balconies. Common amenities include swimming pool, sports court, a clubhouse, picnic area, fitness center, a green courtyard, on-site management and 735 parking spaces. It is located minutes away from the Turtle Walk Basin Park and the Desert Ridge Marketplace. It changed hands for $33 million.

Off Broadway Apartments is sited at 546 S. Country Club Drive in Mesa. The 21-building, 320-unit community was built in 1986 and features 92 one-bedroom and 228 two-bedroom apartments, large floor plans, high ceilings and private balconies and patios. Shared amenities include a picnic area, a resort-style pool, fitness center, clubhouse, on-site maintenance and 552 parking spaces. The community is surrounded by multiple means of transportation, providing tenants with easy access throughout the entire area. Its individual sale price was $28.5 million.

Distressed Past

The properties previously traded in 2012 as part of a 32-property portfolio. Starwood acquired them from PJ Finance Co., which filed for bankruptcy in 2011. The current acquisition is part of Security Properties’ expansion plan in the area, after it recently purchased Andante Apartments in Phoenix. 

Images via the properties’ website