PHOENIX, AZ – KB Investment Development successfully closed a transaction to add Superstition Canyon, a 200-unit Class A low-density garden community in East Mesa, to their high-performing Phoenix metro multifamily portfolio. CBRE s Phoenix multifamily team of Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch brokered the sale.
The transaction marks the fifth large multifamily project bought by KB in the Phoenix area since they entered the local market in 2015. Superstition Canyon is located at 1247 South 96th Street in the East Mesa sub-market, one of the region s fastest growing locations. The acquisition includes a vacant 1.7-acre parcel which will provide additional development potential in a sub-market with limited opportunities for new apartment supply.
KB s CEO and Founder, Khosro Khaloghli, acknowledged the challenges presented by the current public health crisis, and reports that he and his team spent many days weighing the potential impacts on the near and long-term performance of this asset before deciding to go forward in an environment where the majority of similar pending deals have stalled.
The Phoenix multifamily market is in such a strong position that we feel confident in our ability to maximize the upside potential of this new asset even during a possible period of small adjustments in rent growth, says Mr. Khaloghli. Our projects in Mesa and Ahwatukee have occupancies around 98% and we have similar expectations for Superstition Canyon. Looking at the larger picture, we believe Phoenix will continue to be a powerful draw for new residents—with a cost of living less than the national average and the best job growth numbers in the country. People and companies will go where they have the best chance for success.
Superstition Canyon Apartments is positioned to take advantage of an existing array of nearby employers, plus new arrivals moving in to East Mesa in healthcare, aerospace and tech, as the Elliot Road Technology Corridor, anchored by a new Apple data center, bolsters the sub-market s already substantial fundamentals.
The asset will be professionally managed by Maverick Residential Company. Jeffrey Krohn, President of Maverick, joined Khosro Khaloghli in 2018 to establish a multifamily investment/management firm that would set a higher standard for asset performance. Mr. Krohn commented on the company s readiness to meet current challenges. We re excited to add this gorgeous community to our managed portfolio and work with the owner to really polish its value. Due to our robust cloud-based, virtual systems and company culture of creative responses to adversity, we re well-positioned to exceed expectations despite the temporary restrictions. Krohn came to Maverick from his role as the Vice President of Operations for Alliance Residential, where he oversaw the operations of third-party managed assets in Arizona with over 16,500 units in his portfolio. He also made the Business Development platform for Alliance and was instrumental in growing the portfolio from 60,000 to 100,000 units.
The buyer brings more than 40+ years of experience in all phases of development, and well-established relationships with major lenders. Khosro Khaloghli s entities operating in California, Nevada, Texas and Arizona have been responsible for the entitlement/development of more than 125 commercial/industrial buildings totaling over 11 million square feet of warehouse, industrial and office buildings, and 7,000 residential and apartment units, with an estimated value that exceeds $1.5 billion USD. He entered the greater Phoenix market aggressively in 2015, targeting larger communities with value-add potential for acquisition. The company s local portfolio of 1,432 units includes Stone Canyon, a 392-unit very low-density garden-style apartment complex in Mesa, Superstition Canyon with 200 units, and three communities in the premium Ahwatukee submarket: Mountainside, a 288-unit property; Arboretum at South Mountain, with 312 units and Mountain Park, 240-units. All were financed through Freddie Mac and are exceeding their operating budgets under the management of Khaloghli and Krohn s Maverick Residential Company.

Powered by WPeMatico

CAMDEN, NJ – The Michaels Organization, a national leader in residential real estate, has begun site work on Phase 2 of 2720 Fire Road, an affordable housing community in Egg Harbor Township, New Jersey, after successfully achieving a financial closing last week.
“We are very grateful to all our partners, especially to Executive Director Charles A. Richman and his entire team at the New Jersey Housing and Mortgage Finance Agency (NJHMFA) for moving this effort forward during such a challenging time,” said Michaels Vice President Jonathan Lubonski, the lead developer on both phases of 2720 Fire Road.
“We were able to accomplish the entire closing with all teams working remotely, moving documents both electronically and by mail, which was a first for NJHMFA.”
The $15 million development will provide 60 apartments in a variety of one-, two, and three-bedroom layouts, with rents affordable to families earning between 30 percent and 60 percent of the Area Median Income (AMI).
“During these uncharted times, the agency’s top priority is to ensure we continue to meet our core mission of providing affordable housing to New Jerseyans,” said Richman. “Through the commitment of the NJHMFA staff and Michaels, essential affordable housing opportunities for families in Atlantic County will be built.”
Each Energy Star-certified apartment will offer full kitchen, living and dining areas, and a balcony/patio with outdoor storage. Residents will have access to an existing community center with management offices, laundry facility, community room with warming kitchen, and tot lot playground, which were made during the first Phase.
In addition, Michaels will preserve six acres of existing woodlands that will remain a natural green area restricted for future development. As part of the first phase, Michaels actively reforested this area with 2,500 tree and bush saplings. This reforestation effort will continue as part of the second phase.
Site activity has already begun for this second phase and the general contractor, Michaels Construction, expects to start breaking ground soon. New Jersey has declared affordable housing an essential industry during the pandemic, so construction can go forward as originally scheduled.
Financing for the new construction includes $3.9 million in private equity derived from an investment by Berkadia in federal Low Income Housing Tax Credits, as well as $8.2 million in bond financing, issued from the NJHMFA. An additional $8.6 million in funding came from the state’s disaster recovery fund.
Once construction is complete in early summer of 2021, the community will be managed by Michaels Management, Affordable Living, which will ensure it remains a neighborhood asset for the long-term. Other team members in this development include Kitchen & Associates serving as the master architect.

Powered by WPeMatico

ADELPHI, MD – Building on an already strong portfolio in the metro DC/Maryland market, Drucker + Falk assumed management of 675 well-located apartments in Adelphi, Maryland along a historic avenue to Washington, D.C. and just minutes from the inner loop of the Capital Beltway. The Gallery on New Hampshire, under new ownership by an established New York based equity firm, will undergo significant capital investment to interior and exterior apartments and upgraded amenities.
Andrew Chisholm, Multifamily Director at Drucker + Falk said, We are excited to expand our Maryland portfolio where plotted renovations to this value add community are not only a excellent business choice by owners, but one that will benefit the many current and future residents who choose to call The Gallery on New Hampshire home.
Owners chose Drucker + Falk as their management partner due to a decades long history of professional management, local market and value add renovation experience, and a firm who shares a passion for making the ultimate living experience for residents.
Sabrina Gendreau, Drucker + Falk Regional Property Manager who will oversee the asset said, From the minute we stepped foot on this well-located, under-valued property, it s been a labor of like to work with owners in carrying out their vision of increasing market potential through substantial community upgrades. We know resident satisfaction and bottom line NOI are inextricably linked, and we re excited for our residents and what is to come.
The Washington, D.C./Maryland metro market is of strategic importance to Drucker + Falk, whose predominant footprint encompasses the mid-Atlantic and Southeast United States. Portfolio growth in this market comes on the heels of one of the strongest multifamily management growth periods in the firm s history. The addition of The Gallery on New Hampshire brings Drucker + Falk s multifamily management portfolio to more than 38,000 apartment homes across 13 mid-Atlantic and Southeast states.
A full-service real estate services and investment firm, Drucker + Falk was founded in 1938, currently employs more than 1,000 team members, and has regional offices in Newport News, Virginia, Richmond, Virginia, Alexandria, Virginia, Raleigh, North Carolina, Charlotte, North Carolina, Atlanta, Georgia, and Columbus, Ohio.
We ve been operating in the D.C./Maryland metro market for over 40 years and like nothing more than to work with owners committed to investing in sorely needed, quality housing options for an ever-growing, dynamic workforce. We re thrilled to work with our client in bringing their vision for The Gallery on New Hampshire to fruition and to applying the same focus on People, Process, and Performance that has led us to experience one of the largest growth periods in Drucker + Falk s history,” said Wendy Drucker, Managing Director at Drucker + Falk.

Powered by WPeMatico