Olen Properties’ recent push into Phoenix’ apartment market has now topped the $100 million mark, and the Newport Beach-based developer plans more deals in some of the city’s fastest-growing suburbs.
The privately held real estate investor this month closed on the purchase of Highland Groves at Morrison Ranch, a 228-unit-complex in Gilbert, Ariz., about a half-hour’s drive from downtown Phoenix.
The 220,000-square-foot complex opened in 2014 on 14.2 acres. It was built by Scottsdale-based P.B. Bell Cos., which sold it to Olen for $38.3 million, or about $168,000 a unit.
The complex brings in about $254,000 in rents each month, according to marketing materials for the property.
It was an all-cash purchase, according to Olen President Igor Olenicoff, who has been an active apartment buyer in that area the past few months.
The company has acquired three of its four Arizona apartment complexes since May. Other recent deals include the $47 million purchase of the 392-unit Stone Canyon Apartments and the $31 million buy of the 232-unit Palms at Augusta Ranch rental complex.
Those two properties are in Mesa, Ariz., which is a few miles from Gilbert.
The Mesa-Gilbert area of Phoenix and the nearby city of Chandler are becoming the area’s version of the Silicon Valley, “with major new high-tech companies committed to building huge facilities,” Olenicoff said. “The growth is tremendous, as are the new job creations.
“Frankly, that area, with the Chandler area, reminds me of Orange County and the airport area back when I first came here,” said Olenicoff, who started Olen in 1973.
The company has grown to become one of Orange County’s largest commercial real estate owners, although a bulk of its apartment holdings—which now top 10,000 units—are out of state, with additional properties in Nevada, South Florida and Georgia.
Olenicoff, Orange County’s second wealthiest resident, with an estimated net worth of more than $3 billion, said he has his sights on other properties in that part of Arizona.
“Olen’s plans for the balance of this year are to acquire a few more projects in that area.”
San Diego Sale
Irvine-based TRI Pointe Group has sold a chunk of land it owned in San Diego County that’s slated for commercial development.
The homebuilder recently completed the sale of 15.7 acres at the Pacific Highlands Ranch community to a subsidiary of Dallas-based Lincoln Property Co.
The new owner plans to develop an office and research and development campus on the land and is targeting communications, hi-tech and lifescience companies as tenants.
The property, just off the 56 Freeway and a few miles from the ocean, sold for $53 million, or a little under $3.4 million per acre, according to regulatory filings.
TRI Pointe acquired the land through its 2014 buy of Pardee Homes, one of five homebuilding units of Weyerhaeuser Real Estate Co.
The company is still building homes on the residential portion of the masterplanned community, which it continues to own.
Apartment Investment
Atlanta-based Preferred Apartment Communities Inc. said it has increased its investment in an Irvine rental complex being built a few miles from John Wayne Airport.
The company said it will invest up to $56 million in the development of 360 Fusion, a 280-unit complex under development on McGaw Avenue near the Diamond Jamboree shopping center.
The investment works out to a price of $200,000 per apartment.
Preferred Apartments previously disclosed providing a $23 million loan to help fund the project, which is being developed by an Atlanta-based entity operating under the 360 Irvine Lending LLC name.
The 3.6-acre site once held a church.
Preferred Apartment said the latest investment gives the company the option to purchase 360 Fusion at a discounted price following stabilization.
The complex will open next year, according to the website of Torrance-based Withee Malcolm Architects, which designed it.
