PHOENIX-One of the largest lender-facilitated dispositions inthe southwestern US has closed: the Bethany Kingdom I Arizonaportfolio, which consists of seven multifamily communities totaling2,759 units, has sold for $133.1 million.

|

Standard Portfolio, a real estate investment company, acquiredthe portfolio from LaSalle Bank N.A. through the restructuring ofthe existing CMBS bonds. Several weeks ago, the Arizona SuperiorCourt ruled the portfolio could be sold while in receivership.Hendricks & Partners was selected by the receiver, San Diego,CA-based Trigild Inc., to market the portfolio.

|

The portfolio includes the 460-unit Laguna Village; the 320-unitAlante at the Islands and the 374-unit Santana Crossing inChandler, AZ; the 432-unit Whispering Meadows and the 582-unitTuscany Palm in Mesa, AZ; the 395-unit Sienna Springs in Phoenix;and the 196-unit Verrado Park in Glendale, AZ.

|

Mark Forrester and Ric Holway, partners with Hendricks &Partners in Arizona, spearheaded the marketing campaign. Theportfolio received more than 1,100 executed confidentialityagreements from buyers worldwide, multiple asset tours and 181offers, according to Holway.

|

The Bethany Group, an Irvine, CA-based real estate andinvestment firm, bought the properties as a portfolio and obtaineda single loan for all seven communities. It abandoned the class Aproperties in spring 2009.

|

The desertion resulted in deferred maintenance, unpaid employeesand suppliers and many concerned residents who suffered throughmoldy pools and no garbage service. In March 2009, Trigild wasappointed receiver of the Arizona properties, as well as six otherproperties throughout the country.

|

Many states require lenders to foreclose on properties beforeselling them. However, some states, and the federal courts, alreadyprovide for such receiver sales, but often only if the borrowerdoes not object. Arizona had no specific rules allowing orforbidding receiver sales.

|

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.