Tempe – A company formed by Fairfield Residential Inc. in San Diego, Calif. (Chris Hashioka, pres.) paid $39.5 million ($96,814 per unit) to acquire the 408-unit Tempe Grove apartments located at 909 W. Grove Parkway in Tempe. The seller was Archstone Tempe LLC in Englewood, Colo. (Scot Sellers, CEO). The deal was negotiated through Steve Gebing and Cliff David of Marcus & Millichap Real Estate Investment Services in Phoenix. Fairfield Residential acquired Tempe Grove with a $29.625 million Freddie Mac loan issued through CBRE Capital Markets Inc.
The apartment investment is the first in the Valley in more than five years for the privately-held Fairfield Residential. George Lloyd of Fairfield Residential says the company is looking for additional apartment investment opportunities in the Phoenix area . . . preference is for value added-deals with product built in 1980 and newer and communities of at least 200 units. Sources say Fairfield has one deal under contract in the Phoenix area in a deal slated to close in about 60 days. Like many apartment developers and investors who got roughed up in the mid-2000’s, Fairfield Residential had its share of troubled assets and needed to work through those properties.
In August 2006, BREW reported Archstone paying $47.45 million ($116,299 per unit) to purchase Tempe Grove. While Archstone has been selling some multi-family properties in the Valley, the company also is building and buying new product in the Phoenix area (see related story on P. 4).
Get more from Brett Johnson of Archstone by calling (303) 708-6970. Reach Gebing and David at (602) 687 6700.
