PHOENIX-Close to 2.5 years after buying the 629-unit Canyons from special servicer LNR Property, Continental Realty Advisors (CRA) sold the class A multifamily property to Alliance Residential for $50 million, or $80,000 per unit. The Denver-based CRA’s hold period saw capital expenditures of $1.3 million and an occupancy increase from 63% in 2010 to 94% at the time of closing.
“We enjoyed our period of ownership of The Canyons and appreciated the positive response from our
client residents in regard to the many community improvements that were made,” comments zDavid Snyder, CRA’s chairman, in a prepared statement. “We are excited to finalize our sale with Alliance Residential. They are a great community operator and we feel that we are leaving our client residents in good hands.” Paul Priebe, CRA’s fund manager, indicated in a press release announcing the transaction that the company has “multiple transactions in its acquisition pipeline,” specifically in the Phoenix area.
The Canyons, located at 19940 North 23rd Ave. offers studio, one, two and three-bedroom units ranging in size from 475 square feet to 1,166 square feet. Jack Hannum, Bret Zinn and John Drowns of Transwestern negotiated the transaction. The multifamily property was built in two phases during 2004 and 2005.
GlobeSt.com previously reported that CRA acquired the asset in 2010 with its CRA-B1 Investment Fund under the listing price of $52 million. The article notes that LNR had foreclosed on The Canyons in November, 2009. The previous owner was S-J Management, which had acquired the asset in May, 2006, for $80.8 million. As for the buyer, local publication Business Real Estate Weekly reports that The Canyons acquisition is Alliance’s first in close to six years, as the local buyer has been focused more on multifamily development rather than buys.