Tag Archives: alliance residential

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.

rsz_broadstonecanyon_fogler

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.

DorseyBld_5x7_CUT

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.

rsz_canyonsmainpic_cvr

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.