Canadian Firm Enters Market with $41.81 Million Deal for 194 Apartments in Tempe

Article originally posted on Business Real Estate Weekly on June 20, 2017

Trinsic Residential Group Aura on Broadway

Tempe – Brass Enterprises Inc. in Toronto, Ontario, Canada (Ephry Merkur, pres.) has entered the Valley multi-family market with the $41.81 million ($215,515 per unit) acquisition of the 194-unit Aura on Broadway apartments at 1221 E. Broadway Road in Tempe. The seller was GGT TRG Broadway AZ LLC, a joint venture formed by Trinsic Residential Group in Dallas, Tex. (Brian Tusa, managing director) and CNL Growth Properties Inc., a division of CNL Financial Group Inc. in Orlando, Fla. The cash transaction was brokered by John Cunningham and Charlie Steele of JLL in Phoenix. Maricopa County records show the buying entity is Dedicated Broadway Tempe LLC (affiliate of Brass Enterprises). In July 2013, BREW reported Trinsic assembling the 7.8-acre site, which is located about a mile and a half southeast of Arizona State University. Trinsic completed development of the community last year. The investment is the first in the Phoenix market for Brass Enterprises, which is in the process of expanding its multi-family holdings in the nation’s Sunbelt Region as well as other markets in North America. The multi-family investment firm lists Phoenix among 10 target markets in the Sunbelt, which is one of the three geographical areas where it is focusing to grow its portfolio. The privately-held Brass Enterprises now owns 1,680 apartments in five communities located in Tempe, Austin, Tex. (2), Denver, Colo.  and Palm Beach, Fla. The company is also buying apartments in gateway cities in the U.S. and metropolitan Canadian cities. Aura on Broadway is the first of several multi-family projects Trinsic Residential Group is developing in the Valley. Another venture formed by Trinsic recently completed the $14.7 million ($69.10 per foot) purchase of a 4.88-acre site located along the north side of Tempe Town Lake where it is developing 360 apartments. That parcel, which is located within the Watermark Tempe mixed-use project, is west of Scottsdale Road and just south of the 202 Freeway in Tempe. The buyer in that cash transaction was PRII/TRG Watermark LLC, formed by Trinsic, Teacher Retirement System of Texas in Austin, Tex. and Hunt Realty Investments in Dallas, Tex. The sellers were El Fenix LLC and El Fenix II LLC, both formed by Fenix Development LLC in Los Angeles, Calif. (David Norouzi, principal). That sale was brokered by Brent Moser, Mike Sutton and Brooks Griffith of Cushman & Wakefield in Phoenix. Get more from Merkur and representatives of Brass Enterprises at (416) 322-7999. Todd Gosselink, managing director for Trinsic in Arizona, is at (480) 448-0985. Reach Cunningham and Steele at (602) 282-6300.