SAN DIEGO—Sunroad Enterprises has acquired Sonoma Ridge Apartments in Peoria, AZ and Bristol Bay Apartments in Sparks, NV, for a total price of around $66 million.
One of the two acquired apartment properties is just outside of Phoenix.
Sonoma Ridge and Bristol Bay are the first properties to be acquired under Sunroad Enterprises' new Multifamily Division. Growing quickly, Sunroad Enterprises launched a multifamily division; hired industry veteran, Michael Dow, to lead its efforts; and acquired its first two properties—in six months' time.
The acquisitions were done in partnership with Loma Linda University Endowment Fund's multifamily investment platform and Security Properties, Inc., based in Seattle. The management will be through Madrona Ridge Residential, an affiliate of Security Properties, who will renovate common areas and unit interiors over the next two years at both properties. David Dufenhorst, chief executive officer at Security Properties, says, “We are very pleased to partner with Sunroad Enterprises on Sonoma Ridge and Bristol Bay. These communities have enormous potential, and we're excited to bring the experience and track record of our management team.”
Financing for both acquisitions was arranged through Holliday Fenoglio Fowler, L.P. (HFF). Sonoma Ridge's financing was provided by Mesa West Capital, and Bristol Bay's financing was provided by Pacific Coast Capital Partners, LLC (PCCP). “Sunroad is on the forefront of acquisition rehab, and we have seen them move quickly and effectively in securing two prime properties,” commented Aldon Cole, senior managing director of HFF San Diego. “There was intense competition amongst lenders to provide financing for both of these deals, and Sunroad and Security Properties selected Mesa West and PCCP due to their track record, principal's involvement, and commitment to timeline and execution.”
Sonoma Ridge Apartments consists of 240, class-A units in Peoria, 20 miles northwest of downtown Phoenix. Sonoma Ridge was built in 2002, and sits on 14.7 acres. Amenities include a clubhouse, a resort-style pool, a spa, a dry sauna, a picnic and grill area, a fitness center, a media center, a business center, and a covered playground. Sunroad Enterprises purchased Sonoma Ridge for $30.2 million ($125,883/unit) on February 11.
Bristol Bay Apartments features 264, Class-A apartments in Sparks, approximately eight miles northeast of Downtown Reno. The 19.5-acre property, built in 2003, features a spacious clubhouse, a resort-style pool, a spa, a sauna, a media center, grilling areas, a fitness center, a lighted sports court, a business center, and a playground. Sunroad Enterprises purchased the property for $35.5 million ($134,470/unit) on February 4, 2016.
Michael Dow, President of Sunroad's Multifamily Division, states, “We're proud to bring Sunroad's brand—synonymous with high quality and exceptional service—to both the multifamily market, and two new geographic locations, Arizona and Nevada. With the tremendous opportunity at both of these sites, we believe these are outstanding acquisitions for Sunroad and our investment partners. These two blue chip institutions are the best in class, and to have Loma Linda and Security Properties co-invest with Sunroad is a validation of the market and our confidence in the rehab opportunities.”
For more than 45 years, Security Properties has provided quality housing to its residents as well as excellent financial performance for its investors. Security Properties maintains a focused multifamily strategy supported by integrated teams of professional acquisition, development, construction, investment, and property management specialists.
Founded in San Diego in 1977, Sunroad Enterprises is a diversified holding company consisting of two distinct divisions: real estate and automotive. The company has built over 3,000,000 square feet of Class A office space, in addition to the 600 slip Sunroad Resort Marina, 500 multifamily units, and Maderas Golf Club, recently ranked by Golf Digest for the 4th year in a row as a top 100 Golf Course.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
