Greystar Makes First Valley Buy In Four Years…Pays $54 + Million For 424 Apartments

Article originally posted on Business Real Estate Weekly on June 18, 2017

After taking a four-year break from buying apartments in the Phoenix area, Greystar Real Estate Partners LLC in Charleston, S.C. (Bob Faith, CEO) has returned to the Valley investment market. Greystar, one of the nation’s largest multi-family property owners, paid $54.4 million ($128,302 per unit) to buy the 424-unit Green Leaf Promontory Pointe apartments in north Phoenix.

The project, with an address of 888 E. Clinton Street, is located north of Peoria Avenue and east of 7th Street within the Pointe Tapatio resort community. The seller was Green Leaf Promontory Pointe LLC, formed by Green Leaf Partners Inc. in Danville, Calif. (Mike O’Neil, Thomas Hall, Farrokh Billimoria, co-founders). The deal was brokered through Steve Gebing and Cliff David of Marcus & Millichap Real Estate Investment Services in Phoenix. The new owner has renamed the apartments Avana at the Pointe. Maricopa County records show GS Avana at the Pointe LLC (Greystar company) acquired the asset with a $38.1 million Freddie Mac loan issued through CBRE Capital Markets Inc. in Houston, Tex.

In September 2013, BREW reported the Green Leaf Partners entity paying $41 million ($96,698 per unit) to purchase the multi-family community, which was then called Promontory Pointe apartments. The complex was developed in phases in 1984 and 1996. The privately-held Greystar has a global portfolio of $13 + billion, which is comprised of 60,000 + apartments in 50 + markets. The company acquires, develops and manages multi-family projects across the U.S., Europe and Mexico. With 415,634 units under management, Greystar is the world’s largest apartment manager. Greystar, the top apartment developer in the U.S. in 2016 with 7,623 units started, develops conventional apartments, student housing and senior living rental communities.

In its last Valley multi-family acquisition in May 2013, Greystar paid $36.5 million ($111,280 per unit) to buy the 328-unit Via Ventura apartments at 8375 E. Via de Ventura Drive in Scottsdale. Although Greystar has been quiet as far as buying existing apartments in the Phoenix market, earlier this year, BREW reported the company acquiring a 2.45-acre site in the Kierland area of the northeast Valley to develop 171 units in its Overture age-restricted brand. Greystar is interested in buying, developing and managing more multi-family properties in the Phoenix area. After the sale of the 424 units in north Phoenix, and the recent purchase of a 400-unit multi-family community in Tempe. Green Leaf Partners now owns 902 apartments in three Valley assets.