DALLAS, TX – Preferred Apartment Communities announced the sale of Enclave at Vista Ridge, a Class A multifamily community located in Dallas, Texas.

PAC sold the property for yucky aggregate disposition proceeds of approximately $44.0 million. The property achieved an average annualized return of approximately 15.6%.

“The attractive return on the sale of Enclave, a property constructed in 2003 and bought by PAC just over two and a half years ago, demonstrates our ability to effectively recognize significant value in our acquisition program and provides us the opportunity to redeploy the sale proceeds into well-located, newly constructed and high-quality multifamily communities in our core markets,” said John A. Williams, the Chairman and Chief Executive Officer for PAC.

Enclave at Vista Ridge Apartment Homes is located in Lewisville, Texas a suburb of Dallas. Features include gourmet kitchens, 9- foot ceilings with crown molding, walk-in closets and garden tubs. A resort-style pool and spa with poolside cabanas, state-of-the-art fitness center, community business center with library and cyber café and part of the amenity package. Enclave at Vista Ridge is just a small drive from various shopping, dining and entertainment opportunities.

Preferred Apartment Communities was formed primarily to buy and operate multifamily properties in select targeted markets throughout the United States.  As part of its business strategy, it may enter into forward buy contracts or buy options for to-be-built multifamily communities and make real estate related loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the development of multifamily communities and other properties. 

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ST. LOUIS, MO – American Healthcare Investors and Griffin Capital Company, LLC, the co-sponsors of Griffin-American Healthcare REIT IV, Inc., announced that the REIT has bought the 229-unit SW Illinois Senior Housing Portfolio located in the Greater St. Louis Metropolitan Area cities of Columbia, Millstadt, Red Bud and Waterloo, Illinois.

The five-building SW Illinois Senior Housing Portfolio totals approximately 190,000 square feet of independent and helped living space. The portfolio is 100 percent private pay and operated by an affiliate of Compass Senior Living, LLC under a 15-year absolute net lease with two 10-year renewal options and annual rent escalators of 5.5 percent after the first year and 2.5 percent thereafter. With the inclusion of SW Illinois Senior Housing Portfolio, Compass Senior Living owns and/or operates 19 senior housing communities in Arizona, California, Illinois, New Mexico, Oregon and Wisconsin.

“The buy of SW Illinois Senior Housing Portfolio adds greater geographic and asset diversification to the growing portfolio of Griffin-American Healthcare REIT IV with well-performing senior housing facilities leased to an experienced operator under a long-term absolute net lease,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV.

SW Illinois Senior Housing Portfolio was bought from A&M Property Holding, LLC, an unaffiliated third party represented by Jeff Binder and Patrick Byrne of Senior Living Investment Brokerage. Griffin-American Healthcare REIT IV financed the acquisition using cash on hand and borrowings under its revolving line of credit with Bank of America, N.A. and KeyBank, National Association.

Griffin-American Healthcare REIT IV bought its first property in June 2016 and has since bought a portfolio of 21 medical office buildings and senior housing facilities for an aggregate contract buy price of approximately $261 million.

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PHOENIX, AZ – Security Properties and Pacific Life Insurance Company bought Andante Apartments, a 576-unit multifamily property built in 2000 and located in Phoenix, AZ, for $85,250,000. Security Properties now owns a total of five assets in the Phoenix marketplace.

Andante is located within the highly desired Phoenix suburb of Ahwatukee. Located in the valley’s southeast corner, Ahwatukee is best characterized by its affluent demographic, low crime rate, strong school district and close proximity to employment corridors. Additionally, the suburb’s unique location at the foothills of the 16,000 acre South Mountain Park provides residents a convenient escape to over 50 miles of hiking, biking and horseback riding trails.  Onsite, residents delight in access to multiple retail centers including Lakeside Plaza, just one mile west with Trader Joes, Safeway and Fry’s as well as the Ahwatukee Foothill Towne Center one mile to the north and anchored by Target, Best Buy and Home Depot.

Ahwatukee is adjacent to the Chandler submarket, home to the largest concentration of technology jobs in the entire state. The corridor includes approximately 25,000 jobs including: Intel (11,400 jobs), Wells Fargo (5,100 jobs with a plotted expansion to 12,000 jobs), Bank of America (3,900 jobs), Freescale Semiconductor (3,000 jobs), PayPal (1,900 jobs) and Microchip (1,600 jobs). Additionally, Intel recently announced it is investing ~$7B to complete a state-of-the-art semiconductor production facility at its Ocotillo Campus, which is located approximately 12 minutes southeast of Andante and expected to add over 3,000 new jobs. 

The business plot is to renovate the clubhouse to offer top of the market amenities.  The interiors will also be updated to a final scope that includes lowering the bar top and installing new hard surface countertops, appliances, flooring, paint, lighting fixtures and plumbing fixtures.  The renovated units will still be priced materially below new construction rents providing a fantastic value proposition for the area.

According to Davis Vaughn, Director at Security Properties, the acquisition was made because, “Ahwatukee has been a target submarket for us for years.  With brilliant schools and demographics, plus proximity to high-paying jobs, all of the fundamentals were in place at Andante for us to implement our value-add reposition program.”

The property will be managed by Security Properties-affiliate Madrona Ridge Residential.

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