Capital Real Estate Buys 11th and 12th Valley Apartment Project Adds Another 349-units

Mandarina-mandarinaliving

Article originally posted on Business Real Estate Weekly on March 23, 2017

Phoenix/Tempe – Capital Real Estate in Denver, Co. (Dan Levin, managing director) has been one of the hottest multi-family investors in the Valley and the privately-held firm shows no sign of cooling off anytime soon. In the past three weeks, the company has acquired three multi-family properties, bringing its holdings to 2,618 apartments in 12 Valley projects. It two separate purchases this week, Capital Real Estate entities paid a combined $41.35 million ($118,141 per unit blended average) to acquire 349 apartments in projects in Phoenix and Tempe. The company paid $25 million ($138,889 per unit) to buy the 180-unit Mandarina apartments at 5402 E. Washington Street in Phoenix. The seller was Mandarina Residential LLC in Woodland Hills, Calif. (Norman Spieler, Steven Berkson, principals). Christopher Roach and Matthew Roach of ORION Investment Real Estatein Scottsdale brokered the transaction. Maricopa County records show Capital Real Estate – Mandarina LLC (Capital Real Estate entity) acquired the asset with a $17.27 million Freddie Mac loan issued by Grandbridge Real Estate Capital LLC in Charlotte, N.C. In April 2006, BREW reported the company formed by Spieler and Berkson paying $20.5 million ($113,889 per unit) to purchase Mandarina. The complex was built in 2002.

In the other sale, Capital Real Estate paid $16.35 million ($96,745 per unit) to acquire the 169-unit Sevilla apartments at 1145 W. Baseline Road in Tempe. The sellers were eight tenant-in-common entities headed by Hamilton Zanze & Co.  in San Francisco, Calif. (Mark Hamilton, Anthony Zanze, Kurt Houtkooper, principals). The company is listed as manager of three entities that owned 71.93 percent of the property: Colony Grove Apartments LLC (13.62 percent); Lindell Colony Grove LLC (25.22 percent) and West Baseline Colony Grove LLC (33.09 percent). The deal was negotiated by Mark Forrester, Ric HolwayDan Cheyne and Tom Wolff of Berkadia in Phoenix. Records show Capital Real Estate – Sevilla LLC (Capital Real Estate entity) acquired the asset with a $12.703 million Freddie Mac loan issued by Grandbridge Real Estate Capital LLC. In June 2007, BREWreported the Hamilton Zanze TIC investors paying $13.757 million ($81,402 per unit) to buy Sevilla (at that time called Colony Grove apartments). The complex was built in 1982. In the past two years, BREW has reported the privately-held Capital Real Estate investing $258.06 million ($109,255 per unit blended average) to acquire 2,362 apartments in 11 Valley projects. The company is interested in buying more apartments in the Phoenix area. Two weeks ago, BREW reported Capital Real Estate spending $28.75 million ($141,626 per unit) to acquire 203 condominium units within the 221-unit Palm Trails multi-family community at 235 E. Ray Road in Chandler. At year-end 2016, BREW reported Capital Real Estate paying $20.85 million ($108,031 per unit) to purchase the 193-unit Dwell apartments located at 1923 N. 70th Street in Scottsdale. Talk to the ORION agents at (480) 634-6934.