CNL Growth Continues Liquidation with Latest Property Sale
CNL Growth Properties Inc., a publicly registered non-traded REIT, completed the sale of Aura on Broadway, a 194-unit multifamily property in the Phoenix suburb of Tempe, Arizona. Dedicated Broadway Tempe LP, an unaffiliated third party, purchased the property for $41.8 million.
The net cash to the company was approximately $14.9 million after repayment of approximately $19.5 million of debt and other closing costs, reserves, and distributions to its joint venture partner.
CNL Growth Properties and PBB – TRG Broadway LP formed a joint venture in December 2014 to purchase an approximately 7.8-acre infill parcel of land on which it built the multifamily community.
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.
The 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 five Class A multifamily properties.
