ORION Sells Silver Tree Apartments for $2.94 Million

Silver Tree Apartments

Silver Tree Apartments

ORION Investment Real Estate announced its sale of the Silver Tree Apartments, located at 4336 N. 35th Avenue in Phoenix. The 98-unit, individually metered, 1986 vintage property sold for $2,940,000 ($30,000 per unit, $49.70 per sq. ft.). 

The property was in the mid 80’s percent occupancy at close of escrow and did have additional value add improvements for the buyer to capitalize on. The buyer was Ambrosie & Susana Halmagean of Litchfield Park, who had previously sold the 100 unit master metered Sandpiper Apartments through the Orion Multifamily Group at the end of 2012. The buyer was able to assume a low favorable interest rate $1.66M loan and saw Silver Tree Apartments as an opportunity to own a newer individually metered property with a diverse unit mix of studios, ones and two bedroom unit types.

Eddie Chang, a Vice President with the Orion Multifamily Group states, “This is what they do best, which is increase occupancy and continue the progression through additional capital improvements.”

The Seller was an experienced real estate holding company based out of Calabasas, Calif., named KR Capital, LLC. KR Capital, LLC had purchased Silver Tree Apartments as a distressed property in 2010. Over the past three years KR Capital, LLC had completed a considerable amount of capital improvements to the property, which also included re-tenanting the project. 

Alon Shnitzer, a Senior Vice President with the Orion Multifamily Group, states “KR Capital, LLC has been an exceptional long-term client of ours and we are glad to be a part of their continued successes. Earlier this year KR Capital, LLC made a strategic decision trade out of the Silver Tree Apartments, as they had reached their IRR return hurdle goals.”

Eddie Chang, Alon Shnitzer, John Kobierowski, Rue Bax, and Doug Lazovick of ORION Investment Real Estate in Scottsdale negotiated the transaction.

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