Denver private equity firm expands to Phoenix, targets distressed multifamily assets

Article originally posted on Phoenix Business Journal on April 21, 2025

Denver-based Canopy Real Estate Partners has made its Phoenix debut with the purchase of a distressed multifamily property in Surprise. More purchases could be on the horizon.

The private equity firm paid $8.8 million in cash to an entity tracing to Next Generation Capital LLC for the newly built ParkView Townhomes at 16601 N. Parkview Place, according to Tempe-based real estate database Vizzda LLC.

The property was acquired through a lender assisted sale below the loan basis, said Jay Rollins, co-founder of Canopy Real Estate Partners.

“It was basically a lender sale in lieu of foreclosure,” he said.

The newly built, 27-unit townhome project was never occupied before the California developer ran into financial trouble with its construction loan, he said.

Canopy partnered with TBBG Investments on the all-cash transaction, led by Andrew Biskind and Andrew Busching. TBBG identified the property, negotiated the sale, and will provide property management services.

Rollins said he is starting lease-up of the 27 units, which average 1,420 square feet. Monthly rental rates will start around $2,100. He thinks it will take eight or nine months to lease the property to a point where it is stabilized, and then apply for a loan. Rollins added that he expects to get better rate terms on a property that is stabilized than one that is empty.

“Nobody likes to lend on an empty building,” he said. “If you have money, pay all cash. Get the property to where you want it then you go to the debt markets.”

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