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Project News: July/Augst 2015

Terrazzo flooringFlooring Sky Harbor

The City of Phoenix, McCarthy Building Companies and Richard-Bauer will replace approximately 440KSF of Terminal 4 with terrazzo flooring. The project will begin in September 2015 and is expected to be completed in October 2019.

Ante up

Alliance Residential closed on two multifamily sites in Gilbert and Phoenix in early May. The two developments will reportedly host a total of 536 units.

Multifamily business

Chilean-based developer Sencorp has broken ground on a 59KSF, 49-unit condo complex in downtown Phoenix, off 2nd Street. The project, en Hance Park, is across the street from Margaret T. Hance Park and expected to be completed in summer 2016.

Road trip

Skanska has finished the improvements to State Route Slate Creek Curve in Sunflower, a $6.1M roadway project for the Arizona Department of Transportation. This included roadway realignment, slope stabilization and installing a truck escape ramp.

West 80 Rendering_14120 3d view 02 main (3)West is best

Wentworth Property Company has announced it will begin marketing its 380KSF West 80 industrial speculative development, which will break ground later this year and be completed in 2016.

Mill and Rio Final Mill RevMoney shot

Hayden House Tempe, LLC, has announced the name of its mixed-use development project on the corner of Mill Avenue and Rio Salado Parkway — One | Hundred | Mill. Construction is expected to begin at the end of the this year with delivery in 2017.

High voltage

APS is upgrading its Ocotillo power plant in Tempe, which includes replacing two gas generators from the 1960s with five modern units. The $700M project is expected to be completed in 2018.

123rf.com:  Elnur Amikishiyev

Alliance Residential named “Top Companies to Work For”

Alliance Residential, the largest multifamily developer and seventh largest multifamily manager in the nation, has been named one of CareerBuilder’s Top Companies to Work for in Arizona by Republic Media (The Arizona Republic, azcentral.com, La Voz) and CareerBuilder. This is Alliance’s second year on the annual listing.

Companies are evaluated and selected based on a combination of overall satisfaction scores from an Employee Engagement Survey and evaluation from an Employer Questionnaire covering topics related to HR programs, benefits and workplace culture.

“Alliance is one of the few management companies with a corporate support team dedicated to talent acquisition,” said Greta Schneider, Alliance’s vice president of talent. “Our ability to attract and retain top talent directly contributes to the company’s consistent growth, profitability and industry-leading initiatives.”

Alliance offers many unique programs for associates. One area of focus is professional development, and opportunities for associates include a partnership with the Institute of Real Estate Management (IREMÒ) to offer two of the industry’s premier real estate management credentials to Alliance associates through our learning management platform, Alliance University. Meanwhile, Alliance InStyle provides associates with stylish career apparel options from brand-name retailers and is one of the most appreciated perks among our team members. Additional benefits include rental discounts and sales contests with monetary prizes.

“We are honored to be among the companies recognized in this prestigious program,” added Schneider. “This award reflects the hard work and dedication of Alliance associates who make our business a top company to work for.”

Broadstone Civic Center

Alliance Residential buys multifamily site in Gilbert

DTZ announced that Broadstone Civic Center, LLC (Alliance Residential) purchased a 13.72 acre, 256-unit multifamily development site located south of the southwest corner of Warner Road and Civic Center Drive in Gilbert for $3.85 million ($$15,039 per unit). The seller was AZ Gilbert Holdings 2, LLC (an entity formed by Lehman Brothers Holdings, Inc.).

DTZ Executive Managing Directors David Fogler and Steven Nicoluzakis and Managing Director Don Arones represented the seller during the transaction.

“This immediate location has significant access to employment and retail amenities, and with the limited supply of multifamily sites available in Gilbert and the quality that Alliance delivers, this will prove to be a very successful development,” said Mr. Fogler.

Alliance Residential is partnering with Appian Capital, LLC to develop Broadstone Civic Center, a 256 unit apartment complex. Slated to break ground in second quarter 2015, the gated project is planned to include one, two and three-bedroom units that range in size from 750 to 1,300 square feet. Alliance Residential Builders is the contractor on the project.

The property was part of a 37-acre parcel Lehman Brothers purchased in 2005 and is adjacent to the Gilbert Civic Center and Gilbert Town Hall.  It is surrounded by a large amenity base of retailers and restaurants including the Downtown Gilbert Heritage District, a pedestrian-friendly area filled with restaurants, shops, cultural attractions and scenic parks.

Courtesy of Prudencio Alvarez

Alliance Residential recognized in NMHC’s rankings report

Alliance Residential has earned national recognition by making the National Multi Housing Council’s (NMHC) annual multifamily industry rankings report. For the first time, the NMHC expanded to include the nation’s Top 25 Developers, with Alliance ranking as the No. 1 apartment developer with 7,500 starts in 2014. This follows Alliance’s No. 1 ranking on last year’s top developers list, produced by Multifamily Executive magazine.

“Thanks to our great investor partners, clients and associates, Alliance was able to fully leverage a bright U.S. multifamily picture, highlighted by strong fundamentals, high investor demand, and continued favorable demographics in 2014,” said Jay Hiemenz, Alliance President and Chief Operating Officer. “We generated phenomenal returns for our investors which, in many cases, were record-setting for their respective markets. We opened new markets with our first starts in Nashville and New Jersey, and opened our 34th U.S. office location in Boston. We started roughly 7,500 units, representing our best production year since inception in 2000, and currently have 11,000 units under construction, with about as many in the pipeline.”

In addition, Alliance moved up two spots from last year’s ranking to become the seventh largest apartment management company in the nation. Now in its 26th year, the 2015 NMHC 50 is reporting growth across the industry, and noted the number of apartments in the portfolios of the NMHC Top 50 managers rose to an all-time high, just short of 3 million.

“Alliance grew our management portfolio to more than 80,000 units and, more importantly, continued our development of cutting-edge sales, marketing, training and sustainability systems to maintain our standing as a best-in-class operator that drives value creation for our clients and investors,” Hiemenz added. “Specific highlights on the sustainability front include producing our first LEED Platinum buildings, retrofitting thousands of existing units and becoming a certified Energy Star Partner. We are entering 2015 with positive momentum, strong GDP growth, continued low interest rates, good job creation, solid renter demand and positive investor equity flows into apartments. Supply seems to be peaking or has peaked, given higher costs and more entitlement difficulty, thus aiding sustained favorable fundamentals. Occupancy is above 95 percent, rent growth is significantly outpacing inflation and NOI growth is strong. Alliance is well-positioned with a healthy pipeline and conservative balance sheet to continue to create value for our clients and investors.”

Alliance is actively seeking management, development and acquisition opportunities. Headquartered in Phoenix, the company has 34 regional offices divided among six regions throughout the U.S.

Dale Boyles joins Alliance Residential

Dale Boyles, Alliance

Dale Boyles, Alliance

Alliance is expanding into senior housing and has tapped 20-year industry leader Dale Boyles to spearhead the effort.

“After carefully studying the segment, Alliance has made the strategic decision to expand into senior living”, says Jay Hiemenz, Alliance President and COO.  “We see demographic trends translating into strong demand on a national scale, coupled with investor demand for great product and a lack of investor alternatives for sophisticated sponsors on a national scale. We feel well-positioned to take advantage of this market opportunity given our national infrastructure of real-estate offices with leading capabilities — particularly in development and acquisition rehab — and our focus on the luxury segment with award-winning resident services.”

Boyles comes from a long career in the senior housing industry, previously serving as VP with Emeritus/ Brookdale Senior Living, the largest senior housing owner operator in the U.S. As Managing Director of Senior Housing, his new role will focus on strategy development, market feasibility, product design and operating partner relationships for Alliance’s initiatives in this new segment.

“Our strategy includes the ability to provide a service-rich environment, not just in independent living, but also in assisted living and memory care — and, in some cases, having these services available within the same facility to provide a continuum of care,” Hiemenz adds. “We needed a seasoned industry leader like Dale to be able to address these additional segments of the market. Given the infrastructure already in place, we believe we can quickly scale the platform to deliver $1B+ worth of projects during the next three years.”

Boyles was a board member with the California Assisted Living Association (CALA), and holds a Bachelor of Science from San Jose State University and an MBA from the University of California, Irvine.

“Making the change from an operation-focused company with direct oversight of senior housing communities to join a fully-integrated real-estate operating company was a natural fit,” says Boyles. “Alliance isn’t just doing business in the local community — we are a part of the community. That sentiment is the essence of senior housing and what excites me about joining the Alliance family. Fully capitalizing on my operational expertise as we bring our core capabilities to the senior housing arena will be a truly rewarding experience.”



Multifamily developers make name brand connection

Rob Lyles

Rob Lyles, Deco Communities

Naming apartment communities has always been an art form. Some community names connect to romantic or exotic locales, others to the landscape and still more simply to location.

“We believe that an apartment is more than just a place to have dinner and go to bed,” says Rob Lyles, partner in Deco Communities. “We see it as a place to live.”

Deco Communities recently opened its seventh Cabana apartment community. It markets to residents in transition from a college apartment on the road to a career.

The Cabana apartments — six in the Phoenix metro, one in Las Vegas — are all new from the walls out rather than from the ground up. With more than 8,000 multifamily entitlements for new units scattered throughout Phoenix, Scottsdale and the East Valley, Deco moves in a different direction.

“There are a lot of properties with good bones,” says partner Patricia A. Watts. “We find ‘C’ apartments in ‘A’ and ‘B’ locations. Our residents want to live in an urban setting and they want to be proud of their place.”

Patricia A. Watts

Patricia A. Watts, Deco Communities

Deco Communities take distressed or declining properties and completely upgrades the interiors and then applies its unique palette to the landscape, exterior and amenities. The palette is literally color. No other multifamily owner has quite captured the unique colorscape of the Cabana apartment communities.

“People see the colors on the building and they know it’s a Cabana,” she explains. “We’re just using different shades, but completely transforms a building. Then we upgrade the pool area to make it a boutique hotel setting. It’s the same flavors at each of our communities.”

Ian Swiergol, Alliance Residential’s managing director for the Southwest Division, says branding is also an assurance of quality.

“There is no question that our residents select Broadstone communities because of the quality of the property. We use the brand to sell consistency in performance, amenities and management. People use the internet and social media in place of a ‘drive by’ when apartment-hunting,” he says. “Having the Broadstone name means we are able to manage expectations from the moment they see the website.”

Alliance closely guards its Broadstone brand. Each property is capitalized differently, and when one sells, the Broadstone name does not transfer to the new owner.

Ian Swiergol

Ian Swiergol, Alliance Residential

“We want to control the property management, professionalism and quality of resident and property,” Swiergol explains. “When we’re managing the community, we know our residents will not be disappointed.”

Cabana and Broadstone communities appeal to different markets. The branding ensures prospective tenants know what to expect.

“The recession changed the market for apartments in Arizona,” says Swiergol. “People lost homes, but still want the luxury of a place to live that feels like home. That’s what the Broadstone brand means.”

Part of the driving force behind the apartment boom — particularly luxury apartments — is that many found that the home investment became a financial burden. While they’re willing to pay more for rent, the expectations are that the apartment is going to offer a ‘home’ setting.

“Life cycles are changing,” he explains. “The boomer generation is walking away from home maintenance and ownership, but not lowering housing expectations. With the Broadstone name, there is an appeal to the discerning renter. They expect absolute luxury in and out of their apartment.”

Alliance is consistent with the Broadstone brand, and when a prospective resident looks at the name, a major portion of the selling opportunity is out of the way. The potential renter comes to the property with a positive impression before walking into the leasing office. Location plays an important role in the branded communities.

“Millennials are returning to the urban cores,” adds Dan Richards, the third partner in Deco Communities. “They don’t want a long commute; they’re already spending long hours at work. We look at proximity to employment and transportation.”

Dan Richards

Dan Richards, Deco Communities

Swiergol lists those two market characteristics as important for its new Broadstone locations. “We want to be at Main and Main,” he says. “That’s why we’re building on the Scottsdale Waterfront and downtown. Same thing with our new Phoenix locations. There are 80 thousand jobs downtown.”

Lyles and Swiergol talk about the move of large prime employers seeking downtown locations. Employees don’t want to be sitting in cars. The success of Valley Metro Light Rail and increased bus ridership in employment corridors back up the investment in the core areas.
“We see our residents come home and come out,” says Watts.

Branding a series of apartment communities doesn’t cost any more than any other remodeling effort. “It just takes more thought,” Watts adds. “We looked at what market needed for places to live and what those renters wanted from their home. Our brand includes graffiti art, bike rooms and models using Ikea furniture. Being cool doesn’t have to cost a lot. You say you’re living at ‘Cabana’ and a person knows what they are going to see when they get to your place.”

The Broadstone brand has another appeal beyond the community. It’s a name recognized by major institutional investors. Alliance Residential partners with Trammell Crow with their ground-up Broadstone communities. In a market looking for capital, the Broadstone name brings a high level of investment confidence.

In the highly competitive market – both for tenants and for capital – the branding of apartment communities places the project at a higher success level than just an apartment community going up on its own. Branding means expectations, promise and high occupancy rates.

C:UsersRogerDesktopProjectsHines - Chandler CommonsCADCD

Hines closes on purchase of 25-acre Chandler Viridian

Hines, the international real estate firm, announced today that it has closed on the purchase of the 25.5-acre site for Chandler Viridian, a mixed-use property on the northwest corner of the Loop 101/Loop 202 interchange, adjacent to the Chandler Fashion Center. Hines has been working on Chandler Viridian for nearly two years due to the significant legal complications related to the unfinished Elevation Chandler project. With the legal process regarding the site now complete, Hines expects to demolish and remove the structure in December 2014.

“Chandler Viridian will expand the area’s economic engine by creating a true live, work and play environment. The visibility and walkability of Chandler Viridian exceeds many other mixed-used projects in the area,” said Chris Anderson, Managing Director and local City Leader for Hines. “Hines is excited to develop the last available site adjacent to the Chandler Fashion Center and complete the master plan envisioned by the Chandler City leadership and citizens over 15 years ago.  The support received from the Chandler City Council, city staff and Alliance Bank of Arizona has been instrumental to our success.”

“This is a high-profile site in the midst of the Price Corridor, and the entire community will benefit from having a new project there,” said James Smith, the City of Chandler’s Acting Economic Development Director. “This is the moment our residents have been waiting for – to see that failed structure come down, and new development take its place.”

Alliance Residential is developing the Class A multifamily property at Chandler Viridian. Multifamily construction is expected to begin in the first quarter of 2015. Alliance Residential is headquartered in Phoenix with 33 regional offices nationwide.

“Alliance Residential has served as a partner throughout the entitlement and land-closing process, collaborated on the design and plays an important role in delivering on the promise of Chandler Viridian,” says Anderson.

“We are excited to develop the residential component within the well-designed, mixed-use project led by Hines,” said Ian Swiergol, Managing Director of Development, Southwest for Alliance Residential. “This urban community will meet the ever-growing demands of today’s renter profile and will complement the great mix of employment and entertainment options within the Chandler Fashion Center submarket.”

In addition to the luxury apartments, Chandler Viridian will include a six-story modern brand hotel, a central plaza with 250,000 square feet of Class A office, and retail options along with a pedestrian promenade to the Chandler Fashion Center. Chandler Viridian is located in the heart of the Chandler retail entertainment district.

Construction on the horizontal infrastructure for the commercial properties is expected to begin in the second quarter of 2015. The hotel, office and retail projects will begin construction later in 2015 and into 2016.

RSP Architects of Minneapolis serves as the architect of record for Chandler Viridian. A general contractor has not been selected.

Alliance Residential’s Bruce Ward named 2014 ‘Executive of the Year’

Bruce Ward, Alliance Residential

Bruce Ward, Alliance Residential

Alliance Residential Company announced that Bruce Ward, the company’s chairman and CEO, has been named the 2014 Executive of the Year by Multifamily Executive, one of the leading trade publications for the multifamily housing industry.

One of the most prestigious honors of the multifamily industry, the Executive of the Year Award is given annually to the development or management professional dedicated to providing exceptional multifamily housing, exemplary customer service and strong financial performance.

The Multifamily Executive honor is based on the individual’s “achievements in the past year and throughout their career, leadership style and unique approach to handling day-to-day challenges and opportunities, impact on the company’s performance and reputation; and their involvement and ongoing commitment to the multifamily industry.”

Ward oversees Alliance’s development, acquisition and property management components. Along with the key executive group, he has developed or acquired nearly 74,000 apartment homes since company inception. Ward has more than 28 years of industry experience, and is the former Group Managing Partner of Trammell Crow Residential-West. He led the merger with BRE Properties, and served as Executive Vice President for BRE Properties and President for BRE Builders following the merger. He is a member of the World Presidents’ Organization, , and is a member of the Homeward Bound Board of Trustees and National Multi-Housing Council Board of Directors.

“Without question, Bruce is an exceptional real estate industry leader with incredible savvy in real estate investment — but, even more impressive is his ability to leverage the strengths of our associates to maximize growth and profitability of the organization,” said Jay Hiemenz, Alliance’s President/COO. “I’ve never worked with another leader who is so adept at quickly assessing people’s potential. It’s a major reason for our success, and has become a key part of our culture.”

The cover feature story on Bruce Ward’s outlook and plans for Alliance, as well as the multifamily industry as a whole, can be found in the September 2014 issue of Multifamily Executive. To read the entire article, visit http://bit.ly/1AD5wbf.

“I am honored to be recognized with the 2014 Executive of the Year Award, and would like to thank our 2,000 associates for making Alliance such a great place to work and contributing to our company’s success,” Ward adds.

Ward will receive recognition at the Multifamily Executive Awards Brunch and Ceremony on Wednesday, Sept. 24, 2014, at the Multifamily Executive Conference at the Bellagio in Las Vegas.

Alliance Residential promotes leaders to President, COO and CFO roles

Alliance Residential, a national multifamily acquisitions, development, construction and management company, announced the promotions of V. Jay Hiemenz to President and Chief Operating Officer, and Bob Weston to Chief Financial Officer. These leaders will oversee operational and financing efforts respectively, of the company’s approximate $2 billion production pipeline and 70,000 units under management.

Jay Hiemenz, Alliance Residential

Jay Hiemenz, Alliance Residential

“Alliance is well-positioned with a strong balance sheet, broad capital relationships, a first-class leadership team and a solid reputation,” said Bruce Ward, Alliance Chief Executive Officer. “We are proud to be leaders within the multifamily industry and will maintain our position by continuing to serve as solid fiduciaries for our investors, clients, associates and local communities. These recent promotions will help Alliance continue to be an industry leader, as these individuals embrace our principles and understand our company’s vision and future growth plans.”

Hiemenz is a founding partner of Alliance and has been an integral part of Alliance’s growth since the company’s inception. As Chief Financial Officer he has been a great steward of capital, raising roughly $8 billion worth of multifamily capital and helping established Alliance’s platform and policies, as well as finance strategy. With the promotion to President and COO, Hiemenz expands his responsibilities to oversee overall operations of the company. Hiemenz is an active participant within the industry through Urban Land Institute, National Multi-Housing Council, Multifamily Executive, RealShare Apartment and other groups and organizations.

Bob Weston, Alliance Residential

Bob Weston, Alliance Residential

Weston, currently Managing Director for production in the Southeast, will relocate to Phoenix to take on the role of Chief Financial Officer, playing a key role in managing and growing Alliance’s capital relationships. He has experience running multifamily development and, coupled with his prior banking experience, understands the complexities of structuring, negotiating, documenting and executing multifamily real estate transactions.

Broadstone Lincoln pool, WEB

New to Market: Broadstone Lincoln

Broadstone Lincoln

Developer: Alliance Residential Company
General Contractor: Alliance Residential Builders
Architect: ORB Architecture
Location: 7100 E. Lincoln Dr., Scottsdale, Ariz.
Size: 219,000 SF (net rentable area)
Value: $50M
Start and completion dates: Started third quarter 2012. Completed second quarter 2014.

Project Description: Broadstone Lincoln is a 264-unit community that sits on 5.31 acres of land adjacent to the future 110-acre, master-planned Ritz Carlton development. It’s within two miles of a variety of high-end destination shopping centers, including Scottsdale Fashion Square. The community features a mix of high-end finishes and amenities, such as upgraded fixtures and appliances, gas cooktops, hard-surface counters, climate-controlled interior corridors, direct-access elevators, underground parking, private garages, a state-of-the-art fitness center, luxurious common areas for entertaining, and a separate flex studio to coordinate fitness functions and host resident events. The property is pursuing LEED for Homes Platinum Certification.


Alliance Residential Named No. 9 Apartment Management Co. in US

Alliance Residential was recently named to the National Multi Housing Council’s (NMHC) 2014 NMHC 50 list of the nation’s largest apartment owners and managers.

Moving up a spot from last year’s NMHC 50 ranking, Alliance is the 9th largest apartment management company in the nation with more than 71,000 units. Now in its 25th year, the NMHC 50 is a key resource for industry observers.

“We are thrilled to be among the largest multifamily organizations in the country ranking on these important industry lists. We are equally proud of the best-in-class amenities, sustainable initiatives and innovative technologies we are incorporating in our extensive and growing portfolio,” said Brad Cribbins, Alliance’s COO/Executive Vice President.

Alliance continues to grow, and is actively seeking management, development and acquisition opportunities. Headquartered in Phoenix, the company has 22 regional offices divided among six regions throughout the U.S. with a presence in 19 states (including Arizona, California, Colorado, District of Columbia, Florida, Georgia, Maryland, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, South Carolina, Tennessee, Texas, Utah, Virginia and Washington). Over the past 14 years, Alliance has become one of the largest private apartment owners and management companies in the nation, boasting a $9.0+ billion portfolio and 71,000 units in 27 metropolitan markets.


Dorsey Place Sells for $15M to Joint Venture in Phoenix

Transwestern brokered the sale of Dorsey Place, an 84-unit, condominium-style apartment building on East University Drive in Tempe, for nearly $15M. San Diego, Calif.-based Stratford Partners and Pathfinder Partners, which had purchased the building in 2011, sold the building to a joint venture between Diversified International Partners and Alliance Residential of Phoenix.

The sellers were represented by Transwestern’s multifamily team in Phoenix, led by Vice Presidents Jack Hannum and Bret Zinn and Financial Analyst John Drowns. Diversified International Partners is a fund specifically created for Latin American institutional and qualified high-net worth investors by its general partner, Finesa Real Estate Group, and its fund manager, Transwestern Investment Management.

Built in 2007 as a mixed-use condominium and retail community, Dorsey Place underperformed as a for-sale residential venture, selling only six units to individual owners. After several years struggling through the downturn in the housing market, the team at Stratford Partners stepped in with a new vision for the property, according to Transwestern’s Hannum.

This was Stratford Partners’ first acquisition when the company formed in 2011,” said Hannum. “It acquired the building at a significant discount to replacement cost and did a fantastic job of stabilizing the asset over the last two years to significantly increase value. Stratford’s leadership saw the real potential in Dorsey Place, based on the community’s location, the quality of the property and their understanding of the Tempe multifamily market.”

Diversified International Partners and Alliance expect additional value can be added to the property through focused, management expertise and by capitalizing on current market expansion. Less than a mile from Arizona State University and in close proximity to major corporate developments now underway in Tempe, the 96,400-square-foot property is a gated, four-story building featuring high-end specifications that distinguish it from newer, for-lease homes. 

Dorsey Place has two- and three-bedroom units that feature upscale finishes, including granite countertops and stainless steel appliances. Other amenities include underground parking, a heated swimming pool in a central courtyard and a resident clubhouse.

Alliance and Diversified International Partners plan to reposition Dorsey Place in correlation with the additional commercial developments nearby. Plans include converting the vacant first-floor retail space into additional livable units, adding a fitness center and renovating the existing common area amenities.

The new capital investment into Dorsey Place will create a highly attractive property that will offer an enhanced living experience to the additional workforce coming into the area,” said Alliance Managing Director Paul Engler.

With State Farm currently building 2MSF of office space on nearby Tempe Town Lake, there is growing demand for multifamily residential units here,” said Hannum. “So in terms of timing, this is a win-win for the Dorsey Place buyers and sellers, as well as the City of Tempe.”

Industry_East_West_Sold-2, Cassidy Turley

Alliance Residential Buys Downtown Scottsdale Development Site for $18.5M

Cassidy Turley sold a 5.4 acre multi-family development site approved for 316 units at 75th Street and Stetson Drive in downtown Scottsdale. A partnership formed by Alliance Residential (Bruce Ward, Bob Hutt, Jay Jimenez, Ian Swiergol) purchased the property for $18.5M, $78.50 PSF, and $58,544 per unit.  Executive Vice Presidents David Fogler and Steven Nicoluzakis with Cassidy Turley Arizona’s Multi-Family Investment Group and Don Arones, with Cassidy Turley’s Office Group, brokered the transaction on behalf of the Seller – Equity Partners Group (Steven Yari, Shawn Yari, Bob Agahi), a division of Triyar Companies of Scottsdale.

“This is a premier multifamily development site located in the center of the Entertainment District in Downtown Scottsdale.  With the entitlements that were in place and the development expertise of Alliance Residential, this will prove to be one of the leading multifamily projects in the market.” according to Nicoluzakis.

Alliance Residential intends to break ground on the development later this year.


Transwestern Brokers $50M Sale of Phoenix Multi-Family Community


Transwestern brokered the sale of The Canyons, a 629-unit apartment community at 19940 N. 23rd Ave. in Phoenix.

An entity formed by Alliance Residential Co. purchased the property for $50M, or approximately $80,000 per unit. It was sold by Denver-based Continental Realty Advisors, which purchased the property in 2010 for $45.5M and infused $1.3M of capital into The Canyons, while boosting its occupancy rate from 64% in 2010 to 94% at the time of the transaction’s closing.

“Continental purchased The Canyons at a very difficult time in the Phoenix multifamily market,” said Transwestern Vice President Jack Hannum, who along with Vice President Bret Zinn and Financial Analyst John Drowns negotiated the transaction. “They made a great number of improvements in the community and management, and it showed in the occupancy increase.”

“We enjoyed our period of ownership at The Canyons and are excited to finalize our sale with Alliance Residential,” said Continental Realty Advisors President and Chairman of the Board, David W. Snyder. “They are a great community operator, and we feel that we are leaving our client residents in good hands.”

“The life and health of the Phoenix multifamily business has definitely changed as we come out of the Great Recession,” Zinn said. “At the time we closed The Canyons deal, two other apartment projects in the Valley sold for a total of approximately $40 million, and we believe that more is in the works.”

Published reports indicate that while Alliance Residential has developed and sold multi-family complexes in the area for some time, this was its first purchase of an existing project in nearly 6 years. It has also been reported that the privately held Alliance is currently developing 793 units among three communities in the Phoenix area and is seeking land on which to build additional multifamily properties.

The Canyons was built in two phases in 2004 and 2005 and features studio, one-, two-, three- and four-bedroom units ranging in size from 458 SF to 1,166 SF.

Located near the interchange of I-17 the Loop 101, The Canyons meets residential demand created from more than 7 MSF of office space and the employers that reside there such as PetSmart, Honeywell, John C. Lincoln Hospitals, Discover Card and American Express.

“This sale marks a truly positive transition in the fortunes of The Canyons,” Drowns said. “It had been purchased in 2006 for more than $80 million, transferred back to the lending agency where Continental purchased it and ultimately brought it back to health. The latest sale is good news for the asset, but also a recurring example of strong performance and solid opportunities in multifamily investment throughout the Valley.”

Alliance Residential - David Lodwick

Alliance Residential Appoints CFO For Its Southwest Division

Alliance Residential appointed David Lodwick as chief financial officer of its Southwest Region.

Working closely with the regional development team, Lodwick will be responsible for identifying and managing joint-venture equity and debt financing throughout the Southwest.

“I am excited about this new position, which presents an excellent opportunity to expand Alliance’s presence regionally, and take advantage of the current development cycle with new and existing capital partners,” Lodwick said.

Lodwick joined Alliance in 2011 as finance manager, focusing on identifying, negotiating and closing debt and equity financing in the western U.S. Prior to that, he served as director of asset management for DMB Associates with responsibility for managing a variety of office and retail assets; senior director for Opus West, where he was directly involved in closing more than $3.1B of debt and almost $1.8B in property sales across more than 200 transactions; vice president of BBVA Compass with management oversight of a $200M commercial real-estate portfolio; and real estate researcher for CBRE in the valuation & advisory services group, where he was responsible for preparing appraisals for a wide variety of property types.

A graduate of Arizona State University, Lodwick is also a certified appraiser and maintains a real estate license in the state of Arizona. He holds membership or board positions with a variety of civic, social and business associations, including the Real Estate Investment Advisory Council (REIAC), Urban Land Institute (ULI), Men’s Arts Council of the Phoenix Art Museum and EC70/Executive Council Charities.

As of March 31, Alliance Residential has invested $2.7B in the development of more than 21,500 units and $1.4B in the acquisition of more than 13,000 units since inception. In its Southwest region, Alliance manages a portfolio of 16,495 units across 54 properties, of which 7,364 units are owned by Alliance ventures.

Alliance Residential continues to strategically pursue new development and equity opportunities throughout this region, which includes Arizona, Nevada and New Mexico. Each new community developed is a collaborative effort between top designers and experts in local development and construction, with the goal of creating financially rewarding communities that enhance the neighborhood. By targeting locations with sound market analysis and excellent growth characteristics, Alliance achieves superior investment returns.

For more information on Alliance Residential, visit www.allresco.com.

Monroe Tribute Awards Winner

Tribute Awards Wrap Up 2012 AMA State Convention

The 2012 Arizona Multihousing Association state convention ended on a high note Thursday night with the 20th annual Tribute Awards gala at the Phoenix Convention Center.

An audience of more than 1,200 was on hand as 18 awards were given to individuals and real estate companies in Arizona’s multi-family industry. Besides the Tribute Awards, the state convention also included a two-day expo and panel discussions.

The 2012 winners:

  • Industry Partner – Tucson: Judy Drickey-Prohow, Law Offices of Scott M. Clark;
  • Industry Partner: Jim Kowalski, Kowalski Construction Inc.;
  • Volunteer: Amy Smith, Bella Investment Group;
  • Volunteer – Tucson: Chris Evans, HSL Asset Management;
  • Housekeeper: David Dreyer, Autumn Ridge (Greystar Real Estate Partners);
  • Leasing Consultant: Kaysie Keifer, San Palmilia (Mark-Taylor Residential);
  • Assistant Manager: Stuart Draper, Crestone at Shadow Mountain (P.B. Bell Companies);
  • Maintenance Technician: Jose Romero, The Lodge at Arrowhead (Alliance Residential Company);
  • Maintenance Supervisor (1-199 units): Keith Walker, The Oaks (Fairfield Properties);
  • Maintenance Supervisor (200+ units): Todd Schwartz, Fernwood Manor (Greystar RE Partners);
  • Apartment Manager (1-199 units): Meghan Banaszak, Sonoran Ridge (P.B. Bell);
  • Apartment Manager (200+ units): Don Nolder, Fountain Oaks (Greystar RE Partners);
  • Best Team & Community for Properties Built Prior to 1993: Bella Sera, Allison-Shelton RE Services Inc.;
  • Best Team & Community for Properties Built 1993-2003: Dakota at McDowell Mountain Ranch, Mark-Taylor Residential;
  • Best Team & Community for Properties Built 2004-2011: Trillium Cave Creek, Trillium Residential Communities;
  • Regional Maintenance Supervisor: Peter Parham, Alliance Residential;
  • Regional Property Supervisor: Ann Boomsma, MEB Management Services;
  • Developer’s Award: 44 Monroe, Greystar RE Partners.
Multi-Family Market - AZRE Magazine July/August 2010

Multi-Family Market: Its Recovery And What It Means

In this article, Allie Bell takes a look at the recovering multi-family market and what it means for Arizona.

Finding something “hot” in today’s commercial real estate industry is difficult, but as the residential market begins to recover, so does Arizona’s multi-family sector.

Multi-Family Market - AZRE Magazine July/August 2010“The Metropolitan Phoenix multi-family market is emerging from a 12-quarter downturn, which produced the lowest occupancy since the days of the Resolution Trust Corporation,” says Tyler Anderson, vice chairman of CB Richard Ellis’ Multi-Family Institutional Group in Phoenix.

According to M/PF Research, a national apartment survey firm, apartment occupancy nationwide declined about 3 percent in 2008, but leveled off in 2009. Annual rent change declined less than 1 percent in 2008, but fell more than 4 percent in 2009. “Rents across the country are anticipated to drop a bit more in 2010,” Anderson says, “but occupancy appears to have turned the corner as new construction tails off .”

Mike Sandahl, senior vice president of CBRE’s Multi-Family Private Client Group in Tucson, says Tucson’s multi-family market still experienced a steep decline in sales in 2009, despite government-sponsored enterprises (GSEs) keeping liquidity in the market.

Only one project over 100 units sold, and it was sold at a trustee sale,” he says. “However, since the beginning of 2010, there has been renewed momentum in the marketplace. Sales volume has picked up, dominated by over-leveraged properties that have gone back to the lender.”

Multi-Family Development

“There is no new multi-family development activity going on and there doesn’t appear to be any on the horizon, which is both bad and good,” says David Dewar, a principal at Trillium Residential.

However, recovery of the multi-family market is imminent, says Ron Brock Sr., who is the president and CEO of Pierce-Eislen, a local apartment research firm.

We currently have eight properties in Phoenix under construction, and they will all finish this year with nothing else in the pipeline,” he says. “However, Phoenix has traditionally had one of the highest-rated development markets in the country for population — and that’s not going to change.” He adds that the multi-family market will begin its recovery in the latter part of this year, and take on substantial momentum over the next two years.

Market fundamentals in Tucson are showing signs of stabilization, Sandahl says. Occupancy has stopped its steady decline and rental rates appear to be following suit.

Construction in Tucson has remained in-check for the past seven years, sparing the multi-family market from the negative effects of overbuilding.

He noted that when it comes to construction in 2010, there are several properties in Metro Tucson potentially breaking ground this summer — a 330-unit community on the East side, a 300-unit property in the Northwest Central submarket, a 120-unit complex on the West side of town, and 168 units in the far Northwest.

“Overall, development continues to be very cautious,” says Brad Cribbins, senior vice president of the Southwest-Mountain Region for Alliance Residential. “People are very cautious about how to proceed forward, but we will see a very slow emergence into new development over the next 18 to 36 months.”

Investment Review

“The investment market nationally has picked up,” says Brad Goff, principal of Apartment Realty Advisors. “Our market in Phoenix saw only 17 trades in 2008 with more than 100-units, but in 2009 that doubled to 35. … It seems like the rest of the country is a year behind Phoenix — none of the other marketplaces have taken off like Phoenix has in terms of sales volume.”

Anderson agrees. Compared to other major commercial property sectors, multi-family looks very good at present, he says. One of the advantages in multi-family is that lease terms are relatively short, which means revenue can turn quickly after occupancy bottoms.
“The major challenge facing investors today is increased competition from other investors, who are seeking to take advantage of price levels not seen in Metro Phoenix for years,” Anderson says.

Brock reported that Greater Phoenix hit a floor in prices this past year and is holding up fairly well, which resulted in a lot of investment activity with people buying apartments that were previously waiting on the sidelines.

“It’s a very attractive time for multi-family investment as properties have been discounted substantially in most markets,” he says. “Certain areas like Phoenix, Las Vegas and Florida have some substantial reduction in prices, compared to what they were in 2003 and 2007, when there was also a lot of activity.”

He noted that Metro Tucson has not had the same amount of investment activity as Phoenix, as there has not been a great deal of condominium conversion activity or over development in the area.

Anderson says the Phoenix area also is experiencing some capitalization rate compression, as a result of the wide and deep interest in the area’s multi-family offerings among many investor groups.

“Some of the buildings sold in the last month or so were at sub 6 percent cap rates,” Goff says. “That’s a significant change from the 8, 9 and 10 percent rates we’ve seen previously. … I call it a ‘scarcity premium,’ created by the enormous amounts of demand chasing a limited piece of the market.”

Cribbins says, “Today people are purchasing notes, rather than the assets themselves. Right now, development costs don’t produce the yields owners are after, so the investment market influence is for bank notes versus new builds.”

Multi-Family Market - AZRE Magazine July/August 2010He adds that most investors in the Greater Phoenix marketplace are looking at corridors within the Camelback, Tempe and Scottsdale areas. “The demographics are there, as well as the general basic footprints in terms of a healthy multi-family market, so deals are happening,” he says.

When it comes to the types of property classes investors are targeting, Brock explains that, “Investment is like a thumbprint — each investor has their own view of what they want to pursue.” He adds that most of the activity in the Phoenix market is in the upper-end properties in the Class A and high Class B categories. However, buyers and sellers are having trouble capitulating over price points. As for Class C multifamily properties, Brock says those have been hit the hardest with the employment losses.

Sandahl noted that nationwide — no one product type is preferred, as there is strong investment demand across all asset classes.