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$82 Million Bankruptcy Sale of Multi-Family Development Portfolio

January 26, 2021

82 Million Bankruptcy Sale of Multi-Family Development Portfolio

Cushman & Wakefield and R.O.I. Properties jointly announced today the firms have represented U.S. Bankruptcy Trustee regarding Biltmore 24 Investor SPE, LLC, et.al. on the fee and leasehold interest sale of an undeveloped four-parcel portfolio totaling approximately 33 acres in Phoenix and Scottsdale, Arizona. The portfolio, which sold through an auction in the U.S. bankruptcy court, was acquired by an affiliate of ZOM Living, one of the nation’s largest developers of multifamily housing, for $82 million, which plans to deliver thousands of new apartment units over the coming years. The properties were all either fully or partially entitled for high-density multifamily and/or commercial uses.

Cushman & Wakefield’s Don Arones, Managing Director, led the sale and provided brokerage representation on behalf of the seller, the Bankruptcy Trustee, collaborating with Beth Jo Zeitzer and Justin Cirell of R.O.I. Properties who acted as the real estate advisor to the trustee.

ZOM living, a Florida-based firm, announced it intends to build up to 1,600 luxury units as part of a first phase of development spread across five rental communities located in North Phoenix, Scottsdale, and the Biltmore District, resulting in a combined investment exceeding $500 million. The acquisition marks ZOM’s first entry into the Phoenix market.

“This was an incredible opportunity to acquire four of the highest profile development properties in Phoenix and Scottsdale,” said Don Arones. “Each site offered a unique opportunity to develop near highly populated areas surrounded by prime employment corridors and abundant retail, restaurant and entertainment options.”

Arones added, “We are also pleased in the successful outcome of this sale to ZOM Living, which has a wonderful plan in place to bring much needed housing to our region, that, as one of the fastest growing cities in the U.S., continues to attract hundreds of people each day, and will require more than 10,000 homes by 2030 to accommodate growth according to the Arizona Multihousing Association.”

Beth Jo Zeitzer, President/Designated Broker, said, “Navigating court-supervised sales are always challenging, but  a land lease, entitlement status, title, zoning,  litigation, adjacent landowners and association issues made these deals more complex.” She expressed, “Zom will deliver top notch product for these outstanding sites.”

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