Scottsdale – A company formed by Waterton & Associates in Chicago, Ill. (David Schwartz, pres.) paid $48.25 million ($93,930 per unit) to acquire the 514-unit Broadstone Desert Horizon apartments located at 16636 N. 58th Street in Scottsdale. The seller in the dea was a joint venture formed by AEW Capital Management in Boston, Mass. and Alliance Residential Co. in Phoenix (Bruce Ward, Bob Hutt, Jay Hiemenz, et al., principals). The sale was negotiated by Tyler Anderson, Sean Cunningham and Asher Gunter of CBRE in Phoenix.
Court Rich, Partner at Rose Law Group, says, “With so many apartments approved to be built on paper in Scottsdale, it appears the new owners will have to re-concept and make improvements to stay competitive against the new product.” Rose Law Group’s Equine Attorney, Adam Trenk adds that, “Multi-family housing is becoming increasingly valuable in the North Scottsdale area as continued development makes for a vibrant place to live.”
Broadstone Desert Horizon, which was built in two phases in 1985 and 1988, is expected to be renamed. The AEW/Alliance Residential venture renamed the multi-family asset after buying the property in a portfolio deal at year-end 2006. As reported by BREW, the AEW/Alliance Residential venture paid a combined $60.053 million ($116,835 per unit) to buy the multi-family units, which had been operated as two separate communities. The projects were operated as the 384-unit Arabian Trails apartments at 16636 N. 58th Street and the 130-unit La Entrada apartments at 16831 N. 58th Street. Alliance Residential, which has been managing the units sold to Waterton & Associates, uses the Broadstone name in many of its apartment assets. After sitting on the sidelines without investing in any Valley properties for five years, the privately-held Waterton & Associates has invested $109.55 million in acquiring two Phoenix-area multi-family communities in the past two weeks
Last week, BREW reported another company formed by Waterton & Associates paying $61.3 million ($106,424 per unit) to acquire the 576-unit Andante apartments at 15801 S. 48th Street in Phoenix. Waterton & Associates is interested in acquiring additional apartment projects in the Valley. While Waterton had not been purchasing multi-family assets in the Valley for a while, the company has been selling some of its inventory in the Phoenix area
In May 2010, BREW reported a fund managed by Waterton selling the 512-unit Biscayne Bay apartments located at 300 E. Warner Road in Chandler. The buyer in that $43.5 million transaction ($84,961 per unit) was a company formed by PrivatePortfolio Group LLC in Seattle, Wash. In December 2007, BREW reported Waterton selling the 842-unit Presidio at South Mountain apartments at 13229 S. 48th Street in Phoenix. The buyer in that $87.453 million deal ($103,863 per unit) was a venture formed by The Milestone Group in New York City
Mark Stern is the contact for Waterton & Associates . . . reach him at (312) 948-4500. Bill Peterson is the contact at AEW . . . talk to him at (213) 312-2600. The principals at Alliance Residential are at (602) 778-2800. Call the CBRE agents at (602) 735-5555.
