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$19M Pulls Class A Apartments Out of Bankruptcy

PEORIA, AZ-Riverwalk at Desert Harbor, a 264-unit complex placed into bankruptcy to avoid foreclosure, sells to Alliance Residential Co. for $19.3 million. The four-year-old, 20-building development trades for nearly $20,000 below replacement cost.

By Jennifer D. Duell | Updated on February 07, 2005

PEORIA, AZ-After navigating the uncertainty of 9th Circuit Bankruptcy Court in Arizona, Alliance Residential Co. has claimed Riverwalk at Desert Harbor for $19.3 million or $73,000 per unit, nearly $20,000 below replacement cost.

The 264-unit, class A multifamily development at 8885 W. Thunderbird Rd. was placed into bankruptcy during the listing period to avoid foreclosure, Brad Goff, a vice president with Trammell Crow Co. who represented the seller, Dallas-based Hartnett Group, tells GlobeSt.com. “The property was trending up in operations just a little too late,” he says. “The owners were too many dollars in arrears to avoid a foreclosure sale.”

According to Goff, the four-year-old property was encumbered with a HUD loan, with an interest rate of 8%, before it was placed in bankruptcy. “The bankruptcy made the debt go away and made it more attractive to the investment community,” he says.

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