SACRAMENTO, Calif. (June 30, 2010) — Alliance Residential Company is pleased to announce the acquisition of Montessa at Whitney Ranch, a 171-unit condominium community in Rocklin, Calif. The property was acquired via a short sale transaction.
Located at 1150 Whitney Ranch Parkway, Montessa at Whitney Ranch was originally developed as a condominium property; however, the property was converted to a rental community in 2008. The community offers one-, two-, and three-bedroom homes that average 1,086 square feet per unit. Residential units feature attached and detached garages, stainless steel appliances, granite countertops, upgraded plumbing and lighting fixtures, and 9-foot ceilings.
Alliance intends to implement a capital improvement plan that will improve the community's common areas and rebrand the property as an Alliance-owned asset under the Broadstone community name. Alliance will also manage the property.
"Although it took a fair amount of time to successfully work through the short sale complexities for all parties, it allowed us to avoid the risk and timing delays associated with foreclosure conversion," says Russ Kindorf, Managing Director of Investments for Alliance. "This was particularly meaningful given the property's California venue. We have an attractive basis in a relatively new asset, far below what today's replacement cost would be, even on depressed land values and deflated construction costs. The asset's quality should ensure the project remains competitive in the Rocklin submarket for years to come."
"Montessa at Whitney Ranch represents Alliance's fourth acquisition in California over the past nine months," Jay Hiemenz, Alliance's CFO, adds. "It is an example of Alliance using its national lending relationships to source opportunities through note purchases, short sales and REO purchases, while drawing upon our local offices to support execution in underwriting, capital work and property management. Alliance continues to pursue multifamily acquisitions and land across the U.S., in areas where we see good value, above-market return opportunities and solid growth from improving fundamentals. We have closed on an increasing number of investments thus far in 2010 and plan additional investments throughout the remainder of the year."
For more information, visit www.allresco.com.
Company Information
Alliance Residential is a fully-integrated multifamily real estate operating company focused on the development, acquisition, construction and management of residential and mixed-use communities in the United States. Headquartered in Phoenix, Alliance has 16 regional offices divided between seven regions throughout the U.S. Over the past 10 years, Alliance has become one of the largest private apartment owners and the 15th largest management company in the nation, boasting a $6.0+ billion portfolio, and 45,000 units in 22 metropolitan markets across 13 states (including Arizona, California, Colorado, District of Columbia, Florida, Georgia, Nevada, New Mexico, Oregon, Texas, Utah and Washington). For more information, visit www.allresco.com.