Publish Date: 04.04.2019
Volume XXV
Number 13
PEORIA – In teaming up to purchase their fourth multi-family asset in the Valley, a company formed by Blackstone Group L.P. in New Yourk City, N.Y. (NYSE:BX) and Olympus Property in Fort Worth, Tex. paid $69.9 million ($209,910 per unit) to buy the 333-unit Elevation Plaza Del Rio Residential in Scottsdale (Bruce Hart, Paul Fannin, Jason O’Clair, principals), Trammell Crow Residential in Houseton, Tex and Olympus Property, were the sellers in the off-market deal. Incredibly, the Peoria apartments are still under construction and just 50 percent leased, but still commanded the unsolicited offer from Blackstone Real Estate Income Trust Inc. (BREIT). Olympus Property (Chandler Wonderly, Anthony Wonderly, principals), which was a member of Vedura PDR LLC, is remaining in the deal with a small ownership interest and will serve as the operator in the investment with BREIT. Maricopa County records show BREIT Olympus MF PDR LLC (BREIT/Olympus entity) acquired the asset in a cash transaction. In March 2017, BREW reported the Vedura venture paying $3,931 million to acquire the 15.7-acre multi-family site in Peoria and planning to develop Elevation Plaza Del Rio. The multi-family community is located about a mile west of the Loop 101 and just south of Thunderbird Road. BREIT is a publicly-held, non-traded real estate investment trust that is externally managed by BX REIT Advisors LLC, a subsidiary of Blackstone Group L.P. That global investment firm manages more than $472 billion in assets. With the acquisition of Elevation Plaza Del Rio, BREIT and Olympus have now joined forces to buy 1,337 apartments in four Valley communities in transitions totaling a combined $275,35 million ($205,946 per unit blended average). The other three assets are all located in Gilbert. In February, BREW reported the venture partners paying $60.75 million ($237,305 per unit) to purchase the 256-unit Broadstone Gilbert Heritage (now called Cadia Crossing apartments) located at 230 E. Civic Center Drive. In August and September of 2017, BREW reported BREIT/Olympus spending $144.7 million ($193,449 per unit blended average) to acquire 748 apartments in the 366-unit Vistara at San Tan and the 382-unit Redstone at SanTan Village. As reported, BREIT owns 90 percent of those Gilbert projects and Olympus owns the other 10 percent. Since 2015, BREW has reported Olympus Property involved in $450.8 million ($205,376 per unit blended average) of multi-family investments accounting for 2, 195 units in eight Phoenix-area properties. Since the private company’s inception in 2010, Vedura Residential has developed or is under construction on six multi-family communities. The company, which develops multi-family rentals using the brand name Elevation, just started construction on a 297-unit apartment project in Gilbert. That complex called Elevation San Tan, is located south of the southeast corner of San Tan Village Parkway and Williams Field Road.
Get more from Asim Hamid of BREIT at (212)583-300. Talk to the Wonderly’s at (817) 79504900. Reach Hart at (480) 922-9200.