GREEN LEAF TAKES CONTROL OF MIDTOWN PHOENIX APARTMENTS IN $76.15 MILLION DEAL
Publish Date: 08-31-2018
Photo Credit: Green Leaf Partners
GREEN LEAF LANDS NEWLY-BUILT MIDTOWN PHOENIX APARTMENTS IN $76.15 MILLION PURCHASE
Phoenix – In its largest property acquisition in the Valley to date, a fund managed by Green Leaf Partners Inc. of Danville, Calif. (Mike O’Neil, Thomas Hall, Farrokh Billimoria, co-founders) paid $76.15 million ($271,964 per unit) to purchase the 280-unit Broadstone Arts District apartments at 222 E. McDowell Road in Phoenix. The luxury apartment community, which has been renamed Green Leaf Arts District, is now controlled by Green Leaf Arts District LLC (Green Leaf Partner entity). The leasehold interest was sold by CRP/AR Broadstone Arts District Owner LLC, formed by Alliance Residential Co. in Phoenix (Bruce Ward, Bob Hutt, Jay Hiemenz, partners). Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch of CBRE in Phoenix brokered the deal. The 3.9-acre property, located adjacent east of the Phoenix Art Museum at the northeast corner of McDowell and Alvarado roads, is currently being held in abatement by the City of Phoenix through a GPLET (Government Property Lease Excise Tax). Maricopa County records show Green Leaf Arts District LLC took control of the property with a $49.478 million Freddie Mac loan issued by CBRE Capital Markets Inc. in Houston, Tex. Governments (including cities) essentially are exempt from paying property taxes and pay an excise tax instead. The GPLET is considerably less than what the property tax would be and cities use it as an incentive to encourage development. In a GPLET deal, the developer leases the property from the governmental agency for what is typically a nominal amount. With an abatement, taxes and assessments are suspended for a specific period of time. With the investment, the privately-held Green Leaf Partners now has an interest in 936 apartments in three Valley communities. Alliance Residential, among the nation’s largest developers of multi-family properties, developed Broadstone Arts District in 2017. Get more from O’Neil at (925) 362-1476. Talk to Tom Lewis of Alliance Residential at (602) 778-2800. Reach the CBRE agents at (602) 735-5555.
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