Holualoa Companies has sold the highly successful Superstition Canyon Apartments in Mesa to KB Investment Development Company in a $42 million transaction arranged by CBRE.
Located at 1247 S. 96th Street in Mesa, Superstition Canyon features a resort-style heated pool with ramada, TV, fireplace and barbeques, sauna, fitness center, clubhouse with billiards table, business center, basketball court, sand volleyball court, and gated dog park. The acquisition also included a 1.7-acre vacant parcel adjacent to the community.
The sale is one of several high-profile transactions that Holualoa Companies has executed in recent months despite the changing economic conditions. Holualoa bought the property in 2013.
“We are pleased to complete this transaction and grateful to the team at KB for their interest as well as our brokerage team for their hard work,” said Stan Shafer, Chief Operating Officer of Holualoa Companies. “It is a good indicator that the fundamentals behind the real estate market are sound despite the overall economic conditions.”
“Mesa is a high-growth market with strong demand drivers,” Anderson said. “Superstition Canyon’s excellent bones and the community’s proximity to Mesa’s expanding amenities, employment bases and infrastructure generated significant buyer interest with over 300 executed confidentiality agreements and more than 60 tours.”
The transaction marks the fifth large multifamily project acquired by KB in the Phoenix area since they entered the local market in 2015. “Our projects in Mesa and Ahwatukee have occupancies around 98 percent and we have similar expectations for Superstition Canyon,” said Khosro Khaloghli, KB’s CEO and founder. “Looking at the bigger picture, we believe Phoenix will continue to be a powerful draw for new residents. People and companies will go where they have the best chance for success.”
KB’s local portfolio of 1,432 units includes Stone Canyon, a 392-unit 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’s Maverick Residential Company.
Jeffrey Krohn, President of Maverick, joined Khaloghli in 2018 to establish a multifamily investment/management firm that would set a higher standard for asset performance. Mr. Krohn commented, “We’re excited to add this beautiful 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 created the Business Development platform for Alliance and was instrumental in growing the portfolio from 60,000 to 100,000 units.
Built in 2010, Superstition Canyon is located along the U.S. Route 60 corridor with over three million square feet of retail amenities in a four-mile stretch. Loop 202 is the primary transportation artery serving the East Valley and is located less than two miles from the community.