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News release

Phoenix

JLL completes $210 million capitalization of Arizona apartments


PHOENIX, Feb. 26, 2018 – JLL Capital Markets​ today announced the firm completed a sale and recapitalization of Optima Sonoran Village Phases I & II, and secured joint venture equity for the development of Phase III.  Principal Real Estate Investors was the investor in all three phases, in partnership with developer Optima. 

Optima Sonoran Village is a trophy, 592-unit Class A multifamily property in downtown Scottsdale, Arizona.  As part of the sale, Principal acquired a majority interest in the property, valuing the asset at $200 million, while Optima took a minority interest.  Northwestern Mutual Life Insurance Company provided a 10-year, fixed-rate $100 million loan to the new venture that was used for the phase I and II purchase.

As part of the asset purchase, Principal also agreed to provide a majority of the equity for the development of Optima Sonoran Village's third phase. The development will feature units averaging over 1,200 square feet as well as a luxurious rooftop amenity level.

Managing Director David Hendrickson and Executive Vice Presidents Chuck Johanns, John Cunningham and Charles Steele led the sale and joint venture teams. Hendrickson, Managing Director Bob Klein and Vice President Patrik Modig led firm on the financing. 

"This is a top notch product in one of the most sought after and amenitized submarkets in the Phoenix metro area," said Hendrickson. "This injection of fresh equity allows Optima to realize its business plan and Principal Real Estate Investors to take majority ownership in a cash flowing asset that has a lot of runway ahead of it."

Added Johanns, "We worked with all parties involved to get this done on a condensed timeline. It's a testament to both Optima and Principal that this project now has a strong partnership going into the third phase of development."

Optima Sonoran Village offers an average unit size of 1,022 square feet along with upscale amenities such as resort style pools, a fitness center, racquetball courts, an indoor basketball court, putting greens and a community park. In-unit amenities include granite countertops, floor-to-ceiling windows and stainless steel appliances.

Located within the heart of Scottsdale, Optima Sonoran Village offers residents access to an amenity-rich area that includes a high quality of life and relatively low cost of living. The city is known for its more than 90 restaurants and 320 shops, and also for its thriving local economy that includes robust technology, healthcare and hospitality industries.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2017 alone, the firm's 2,000 Capital Markets specialists completed $170 billion in investment sale and debt and equity transactions globally.

For more news, please visit The Investor, an online and mobile app news source providing real-time commercial real estate news to asset buyers and sellers around the world.

For more news, videos and research resources on JLL, please visit the firm's U.S. media center Web page: http://bit.ly/18P2tkv.

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2017, JLL had revenue of $7.9 billion and fee revenue of $6.7 billion; managed 4.6 billion square feet, or 423 million square meters; and completed investment sales, acquisitions and finance transactions of approximately $170 billion. At the end of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of 82,000. As of December 31, 2017, LaSalle had $58.1 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.