By: Paul Dionne | Vizzda
In one of the largest transactions in terms of dollar value thus far this year, Chicago-based investment management firm, Heitman, sold one of the largest apartment complexes in the valley—the 676-unit Lakeview at Superstition Springs for $66.6m. The buyer was San Diego-based multifamily developer Fairfield Residential who paid $19.2m in cash for the property and secured an additional $47.4m in funding from CBRE Multifamily Capital, assigned to Fannie Mae at origination. Fairfield owns or manages ten other properties in the greater Phoenix area. The $66.6m sales price equates to $98,520 per unit.
Lakeview at Superstition Springs’ 676 units are situated in eighty-nine residential buildings totaling 636,963 ft2 in addition to a leasing office and clubhouse that bring the total improved square footage above 640,000. The property was built in two phases: forty-two buildings totaling 287,135 ft2 built in 1996 and forty-nine buildings totaling 356,668 ft2 built in 1998. The gated complex sits on 42.72 acres net of the lakes complex that runs through the property and features four resort-style pools. The one bedroom floor plans range from 660 ft2 to 776 ft2, the two bedrooms range from 916 ft2 to a 1,314 ft2 split-level and three bedroom floor plans range from 1,181 ft2 to 1,214 ft2.
Heitman previously acquired Lakeview at Superstition Springs in March of 2006 for $59.4m or $87,869 per unit from Nearon Enterprises. At the time of sale, Heitman assumed $38m in existing CMBS debt in care of Lasalle Bank and secured additional funding in two notes with Deutsche Bank Berkshire Mortgage of $8.957m and $29.543m, maturing April 1st, 2011 and both of which were assigned to Fannie Mae at origination. Those debts were released in May of 2012 and replaced with $36m in new debt with CW Capital. Ignoring financing and carry costs and operational proceeds, Heitman earned a 12.1% absolute rate of return and a 184.6% cash-on-cash return.
To Contact the Author:
Paul Dionne – pdionne@vizzda.com
Phoenix - It had been over a decade since the company's last apartment property purchase in the Valley, but IMT Capital LLC in Sherman Oaks, Calif. (Cory Thabit, et al., general partners) has jumped back into the Phoenix multi-family investment market in a big way. The company paid $100.5 million ($120,793 per unit) to acquire the 832-unitDeer Valley Village apartments located at 3010 W. Yorkshire Drive and 19645 N. 31st Avenue in Phoenix. The seller was Deer Valley Apartments NF LLC, a company formed by Sterling American Property Inc. in Great Neck, N.Y. (Michael Katz, Richard Wilpon, co-CEOs). The transaction was negotiated through Tyler Anderson, Sean Cunningham,Asher Gunter and Matt Pesch of CBRE in Phoenix. Maricopa County records show IMT Capital III Deer Valley LLCacquired the real estate using a $500 million credit facility from Freddie Mac(Federal Home Loan Mortgage Corp.). In April 2008, BREW reported Sterling American Property paying $85.2 million ($102,404 per unit) to acquire Deer Valley Village apartments. The complex, which was built in phases in 1996 and 2000, is now being called IMT Deer Valley. The With the acquisition, the privately-held IMT now owns 3,232 apartment units in seven Phoenix-area projects. The company also owns multi-family assets in California, Colorado, Texas, Florida and Georgia. The projects are managed by affiliate IMT Residential, which currently manages more than 20,000 apartment units in six states. IMT Capital is looking for additional multi-family investment opportunities in the Valley, as well as other target markets. In its last Phoenix-area purchase reported by BREW in August 2004, IMP (formerly called Investors Management Trust Real Estate Group) paid $24 million ($46,875 per unit) to buy the 512-unit Desert Palm Village apartments at 1215 E. Vista Del Cerro in Tempe. In addition to those two communities, IMT owns the 292-unit Rancho Murietta apartments at 1717 S. Dorsey Lane in Tempe; the 420-unit Del Coronado apartments at 843 S. Longmore Street in Mesa; the 406-unit Moorings at Mesa Cove apartments at 1233 N. Mesa Drive in Mesa; the 464-unit Superstition Vistaapartments at 450 S. Acacia Street, and The Meadows, a 306-unit community at 2151 E. Southern Avenue in Mesa.