PHOENIX-Phoenix-based apartment developer and manager Alliance Residential Co. recently spent more than $50 million for a large apartment complex in north Phoenix the firm’s first purchase of an existing multifamily project in more than five years.
The Canyons is a 629-unit apartment project located near the interchange of the I-17 and Loop 101 in the Deer Valley area. According to the Phoenix Business Journal it was sold at 94-percent occupancy by Denver-based Continental Realty Advisors, which had owned the project for about two years.
But The Canyons, and the overall multifamily market, for that matter, were distressed when Continental took over, the paper added. The property was built in two phases in 2004 and 2005 and was only 63 percent occupied when Continental bought it in 2010 for $45.5 million. The Denver firm invested $1.3 million into various after-purchase capital improvements.
“This sale marks a truly positive transition in the fortunes of The Canyons,” John Drowns, a financial analyst at Transwestern, which brokered the deal, said in the statement. “It had been purchased in 2006 for more than $80 million, transferred back to the lending agency where Continental purchased it and ultimately brought it back to health. The latest sale is good news for the asset, but also a recurring example of strong performance and solid opportunities in multifamily investment throughout the Valley.”
Alliance has been developing, managing and selling apartment projects in the Valley and other markets throughout the country for several years, but The Canyons was its first acquisition in nearly six years.
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