Scottsdale - Tucson-based, HSL Properties, Inc. (Humberto Lopez, principal) sold two apartment projects in Scottsdale totaling a combined 488-units for $50.5 million. The Scottsdale properties are the first direct multi-family acquisitions in Arizona for New York Life Investors, which is a wholly-owned subsidiary of New York Life Insurance Company. Various New York Life entities have previously made loans backed by Valley apartments and the company also holds interests in office project in the Phoenix area. New York Life Investors is interested in buying additional apartment properties in the Arizona. Brad Goff and Dave Lord of Apartment Realty Advisors of Phoenix represented the seller in both transactions.
The two transactions closed last Thursday, in which Madison-MF Casa Sante Fe AZ LLC (New York Life company) paid $29.245 million ($110,777 per unit) to acquire the 264-unit Casa Santa Fe apartments at 11105 N. 115th Street in Scottsdale. The seller was HSL Casa Sante Fe Properties LLC. And in a $21.255 million sale ($94,888 per unit), Madison-MF Cabrillo AZ LLC purchased the 224-unit Cabrillo apartments located at 11620 E. Sahuaro Drive in Scottsdale. HSL Casa Sante Fe Properties was also the seller. HSL Properties had paid $28.6 million to purchase both Cabrillo and Casa Sante Fe just over four years ago. In January 2010, HSL paid $12.6 million ($56,250 per unit) to acquire Cabrillo. In December 2009, HSL paid $16 million ($60,606 per unit) to purchase Casa Santa Fe. Both of the apartment projects were developed in 1987 by Fairfield Residential Inc. of San Diego. With the sales to New York Life, HSL Properties still owns 10,000+ apartment units in 39 projects located in the Phoenix and Tucson areas. Omar Mireles, Vice-President of HSL Properties says the company is looking to buy additional apartment projects in Arizona. The contact at New York Life Investors is Chris Hunt, he can be reached at (415) 402-4109. Call Mireles at (520) 322-6994. Goff and Lord are at (602) 252-4232.