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Published:   February 22, 2013
Volume:   XIX    Number:   7

GREYSTAR/GOLDMAN VENTURE CLOSES FIRST LEG OF PORTFOLIO . . . $108+ MILLION FOR 927 UNITS

Phoenix - Companies formed by Greystar Real Estate Partners LLC in Charleston, S.C. (Bob Faith, CEO) and Goldman Sachs & Co. in New York City, N.Y. paid a combined $108.185 million to acquire 927 apartment units in three Phoenix communities. The purchase marks the first half of a larger portfolio deal which will result in the Greystar/Goldman venture paying $180.3 million ($114,476 per unit) to buy 1,575 apartment units in the Valley. In March, the Greystar/Goldman venture will pay $72.115 million to acquire the other three properties, which are comprised of 648 units in two communities located in Phoenix and one in Tempe. BREW reported the pending portfolio sale two weeks ago. As reported, the Valley multi-family projects are part of a $1.5 billion portfolio deal involving 8,010 apartment units that the Greystar/Goldman venture is buying in six states. The seller of the 27 multi-family communities are companies formed by Equity Residential Trust in Chicago, Ill. (NYSE:EQR, David Neithercut, CEO). In addition to the six Valley properties, the other 21 projects, which total 6,435 units, are located in California, Colorado, Washington, Florida and New Jersey. The Greystar/Goldman joint venture has closed on multiple properties in the other markets and the entire portfolio is scheduled to close by first quarter 2013. The sales of the Valley assets are being brokered by Tyler Anderson, Sean Cunningham and Asher Gunter of CBRE in Phoenix. Here is the name, description, purchase price and loan details on the three Valley properties that closed Feb. 14: Sonoran, 429 units at 13625 S. 48th Drive in Phoenix, $50.966+ million ($118,802 per unit), $38.569 million Freddie Mac loan issued by CBRE Capital Markets Inc., Bella Vista, 248 units at 7810 N. 14th Place in Phoenix, $30.104+ million ($121,388 per unit), $23.113 million Freddie Mac loan issued by CBRE Capital Markets Inc., Sedona Ridge, 250 units located at 5010 E. Cheyene Drive in Phoenix, $27.115 million ($108,460 per unit), $20.559 million Freddie Mac loan issued by CBRE Capital Markets Inc. Maricopa County records show the buying entity of Sonoran was GSG Residential Sonoran LLC and the seller was Evans Withycombe Finance Partnership L.P. The buyer of Bella Vista was GSG Residential Bella Vista Phoenix LLC and the seller was EQR-Bella Vista LLC. Records show Sedona Ridge was acquired by GSG Residential Sedona Ridge LLC and the seller was ERP Operating Limited Partnership. All six of the Phoenix area apartment properties in the Greystar/Goldman portfolio were built between 1989 to 1995. Here are the other three Valley apartment communities that have yet to close: The Heritage, 204 units at 1100 E. Osborn Road in Phoenix; Village at Lakewood, 240 units at 15815 S. Lakewood Parkway W in Phoenix, and Enclave, 204 units at 3255 S. Dorsey Lane in Tempe. The contact at Goldman Sachs is Katie Bloom . . . call her at (972) 368-2200. Wes Fuller of Greystar is at (843) 579-3202. Cydney White is the contact at Equity Residential . . . reach her at (312) 928-1301. The CBRE agents are at (602) 735-5555.




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