PHOENIX-One of the largest lender-facilitated dispositions in the southwestern US has closed: the Bethany Kingdom I Arizona portfolio, which consists of seven multifamily communities totaling 2,759 units, has sold for $133.1 million.
Standard Portfolio, a real estate investment company, acquired the portfolio from LaSalle Bank N.A. through the restructuring of the existing CMBS bonds. Several weeks ago, the Arizona Superior Court ruled the portfolio could be sold while in receivership. Hendricks & Partners was selected by the receiver, San Diego, CA-based Trigild Inc., to market the portfolio.
The portfolio includes the 460-unit Laguna Village; the 320-unit Alante at the Islands and the 374-unit Santana Crossing in Chandler, AZ; the 432-unit Whispering Meadows and the 582-unit Tuscany Palm in Mesa, AZ; the 395-unit Sienna Springs in Phoenix; and the 196-unit Verrado Park in Glendale, AZ.
Mark Forrester and Ric Holway, partners with Hendricks & Partners in Arizona, spearheaded the marketing campaign. The portfolio received more than 1,100 executed confidentiality agreements from buyers worldwide, multiple asset tours and 181 offers, according to Holway.
The Bethany Group, an Irvine, CA-based real estate and investment firm, bought the properties as a portfolio and obtained a single loan for all seven communities. It abandoned the class A properties in spring 2009.
The desertion resulted in deferred maintenance, unpaid employees and suppliers and many concerned residents who suffered through moldy pools and no garbage service. In March 2009, Trigild was appointed receiver of the Arizona properties, as well as six other properties throughout the country.
Many states require lenders to foreclose on properties before selling them. However, some states, and the federal courts, already provide for such receiver sales, but often only if the borrower does not object. Arizona had no specific rules allowing or forbidding receiver sales.
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