CNL Growth Continues to Pursue Liquidation with Sale of Arizona Multifamily Property
CNL Growth Properties Inc., a publicly registered non-traded REIT, continues with its plan of liquidation with its latest agreement to sell a joint venture multifamily property located in the Phoenix suburb of Tempe, Arizona for $41.8 million.
In December 2014, the REIT and PBB – TRG Broadway LP formed a joint venture to purchase an approximately 7.8-acre infill parcel of land which it later built a 194-unit multifamily community known as Aura on Broadway.
The total budget, including the $4 million purchase price of the land, construction costs, and other development costs, was approximately $29.5 million. CNL Growth owns a 90 percent interest in the property.
Dedicated Broadway Tempe LP, an unaffiliated third party, is expected to purchase the property at the end of the month.
The potential sale is part of the REIT’s ongoing liquidation plan that was approved by stockholders in August 2016. In March, the REIT sold Oxford Square, a 248-unit multifamily community near Baltimore, for $65.7 million.
CNL Growth Properties, formerly known as Global Growth Trust, commenced its $1.5 billion initial public offering in October 2009. In April 2013, the REIT closed the offering after raising approximately $94.2 million and changed its name to CNL Growth Properties. In August 2013, the company initiated a follow-on offering and refined its investment focus on multifamily development projects in the Southeast and Sun Belt regions of the U.S. The combined offerings raised a total of $208 million in investor equity. CNL Growth Properties’ portfolio currently consists of six class A multifamily properties.
