PHOENIX-Everest Holdings has partnered with Thackeray Partnersto acquire 230 units of San Riva at The Foothills, a 280-unitbroken condo project. The joint venture paid $15.8 million, or$68,695 per unit, for the class A rental units.

|

The seller was San Riva Madison Ownership Company LLC, a jointventure comprised of Centennial, CO-based Madison Development Groupand Dallas-based Hunt Realty Investments. The partnership acquiredSan Riva at The Foothills in 2005 for $32.2 million with plans toconvert the complex’s 280 apartments into condominiums.

|

Only 50 units sold before the downturn in the housing marketcaused the community’s sales to stall, and Hunt Realty took fullcontrol of the property. The company hired Cassidy Turley BRECommercial to sell the remaining rental units.

|

The Cassidy Turley BRE Commercial team, which consisted of SteveNicoluzakis, David Fogler and Dan Dobric, approached a number ofpotential buyers late last year. Scottsdale, AZ-based EverestHoldings and Dallas-based Thackeray Partners were introduced to thedeal by John Cunningham of ARC Southwest, which currently managesSan Riva at The Foothills.

|

“We ended up with about 10 offers,” Nicoluzakis tells GlobeSt.,adding that the Everest Holdings partnership not only acquired the230 rental units remaining in San Riva, but also took over thecondo association. “Because of the broken nature of theproperty, the buyer was able to acquire a class A asset in an Alocation at a pretty deep discount to what a whole rental projectwould sell for.”

|

Built in 1999, San Riva at The Foothills is Everest Holdings’first multifamily acquisition; the company owns land throughout theValley, according to Nicoluzakis.

|

Located at 2155 E. Liberty Lane in the Ahwatukee Foothillssubmarket, San Riva offers a unit mix of one, two and threebedrooms ranging from 700 square feet to 1400 square feet. Mostunits feature upgraded condo finishes, and rental rates range from$600 to $1,100 per month. The rental portion of the property is 95%occupied.

|

Everest Holdings and Thackeray Partners obtained a loan fromChicago-based NXT Capital to acquire San Riva’s rental units. LukeDonahue, a vice president in NorthMarq Capital’s local office,arranged the financing.

|

Nicoluzakis says the loan is structured to provide proceeds forthe partnership to buy back the existing condo units and returnthem to rental status. “The long-term goal is to put the projectback together as a rental community,” he explains.

|

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.