NEW BUYER FROM OREGON SPENDS $33.3 MILLION FOR 252 APARTMENTS IN CHANDLER
As Reported by BREW.
Chandler – In its first investment in the Valley, Oregon Pacific Investment and Development Co. in Portland, Ore. (Randy Lovre, Julie Leuvrey, co-presidents) paid $33.3 million ($132,143 per unit) to acquire the 252-unit Pinnacle Queen Creek apartments at 800 W. Queen Creek Road in Chandler.
The seller was a company controlled byThe Northwestern Mutual Life Insurance Co. in Milwaukee, Wis., and Essex Property Trust Inc. in Palo Alto, Calif. (NYSE:ESS). The deal was brokered through Dave Fogler and Steve Nicoluzakis of Cassidy Turley in Phoenix. The project was developed in 1999 by Northwestern Mutual Life Insurance and BRE Properties Inc. in San Francisco, Calif. (NYSE:BRE).
In April, Essex Property Trust merged with BRE Properties in a $16.2 billion deal and took over ownership of 17 apartment communities, including Pinnacle Queen Creek and two other multi-family assets in Phoenix. Maricopa County records show OPID Chandler LLC (Oregon Pacific entity) acquired Pinnacle Queen Creek with a $27.712 million Fannie Mae loan issued through CBRE Multifamily Capital Inc. in Houston, Tex. Mark-Taylor Residential of Scottsdale has been hired to manage the property. The new owner is expected to make some interior and exterior upgrades to the project. Until now, the privately-held Oregon Pacific Investment and Development Co. (OPID) had only acquired properties located in Oregon, Washington and California.
Its portfolio includes multi-family, office, industrial, retail and land parcels. Leuvrey says the company is looking for more apartments in the Valley. In May 1999, BREW reported the venture formed by BRE Properties and Northwestern Mutual paying $2+ million to buy the 16.88-acre site for Pinnacle Queen Creek and planning to develop the apartments. Over the years, BREW has reported BRE Properties, developing, buying and selling numerous apartment projects in the Valley. Since 2003, BRE Properties has sold 1,707 apartment units in five Phoenix area multi-family communities generating a total of $175 million. The company developed its last Valley apartment complex in 2000.
Essex has control of two former BRE Properties projects in Phoenix in the 552-unit Pinnacle at South Mountain apartments located at 5151 E. Guadalupe Road and the 350-unit Pinnacle Towne Center apartments at 1601 E. Highland Avenue. No word on the disposition of those assets, but the properties may soon be in play. Essex Property Trust (Michael Schall, pres.) owns 232 apartment communities and has another 15 multi-family properties under construction. Only two of the projects are located in Phoenix and the others are in No. Calif.,
So. Calif. and the state of Washington. Given that Essex has never been an investor in the Phoenix market and the assets the company now controls in the Valley were acquired in the merger with BRE Properties, it’s possible that Pinnacle at South Mountain and Pinnacle Towne Center may be available for purchase. Find out more from the principals of Oregon Pacific at (503) 225-1102. Adam Berry is the contact at Essex . . . (650) 494-3700. Talk to Fogler and Nicoluzakis at (602) 954-9000.