PHOENIX (May 6, 2020) – 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.
The sale of the 200-unit property was brokered on behalf of the seller by CBRE’s Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch of Phoenix Multifamily Institutional Properties.
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.
About KB Development
KB Investment Development Company (KB) is an Orange County, California based real estate development company with more than 40 years of experience in the development, construction and management of commercial and residential real estate. KB and its affiliates have built more than 7,000 residential and multifamily units and more than 11 million square feet of industrial and office properties. More at www.kb-development.com
About Maverick Residential Company
Founded in 2018, Maverick Residential Company (MRC) is a premiere, privately held real estate company based in Phoenix, Arizona. The Company is a fully integrated platform with a specific focus on the acquisition and management of multifamily real estate. MRC prides itself on streamlined operational expertise, fostering strong on-site teams and taking care of residents. For more information, please visit www.mavres.com
About Holualoa Companies
Holualoa Companies is a real estate investment firm focused on the successful acquisition, repositioning and disposition of real estate assets. Holualoa also acquires core assets in superior locations and participates in select development opportunities. Headquartered in Tucson, Arizona, with offices in Phoenix, Santa Monica, Hawaii and Paris, France its investments span the United States and Europe and include office, retail, industrial, multifamily, self-storage and hotel properties. For more information visit www.holualoa.com.