Atlanta-based Canopy Real Estate Partners has acquired the newly built CJ Townhomes for $13.39 million. Located in Mesa, Arizona, the 36-unit multifamily community was completed in 2024.
Canopy has executed its signature strategies and purchased the 95% leased property at a price below its replacement cost.
Canopy Buys New Mesa Townhome Community at Below-Cost Deal
Canopy Real Estate Partners has shared the announcement of its recent CJ Townhomes acquisition. The Atlanta-based commercial real estate firm has purchased the 2024-built 36-unit multifamily community in Mesa for a price below the replacement cost of $13.39 million.
Located at 3426 E University Drive in Mesa, the CJ Townhomes property spans 61,670 square feet. It features three-bedroom townhomes with two-car garages and private yards.
Additionally, the community also includes a pool, spa, and shared outdoor spaces for the residents.
Due to financial constraints, the nearly fully leased, newly built property was sold at a discounted price. The previous owner was facing debt-related challenges and high construction costs, resulting in the property being sold at a discounted price.
The real estate firm has rebranded CJ Townhomes as The Sonoran Townhomes. The property is expected to bring a steady income and will grow further through rent adjustments.
Details of the Investment
Known for its ‘hallmark move,’ Canopy purchases well-performing assets that are under financial pressure.
According to Canopy Real Estate Partners co-founder Jay Rollins, “We’re seeing opportunities to acquire assets like this at attractive pricing due to capital market pressures brought on by increased interest rates and a lack of equity capital in the middle market.”
He added that CJ Townhomes is one of the highest-quality, newly built assets in the Phoenix area, which is a strong rental market.
Rollins also explained that each market downturn cycle is different. In this case, the market cycle was driven by ‘capital stack distress,’ rather than any issue with property performance. “This is different from prior cycles and provides an excellent buying opportunity,” he noted.
The acquisition deal was locally led by TBBG Investment, Canopy’s Arizona-based market partner.
TBBG will manage the daily operations and execute the business plan on behalf of the real estate firm.
The deal is also part of Canopy Fund I, a $75 million fund that is focused on the Western U.S. middle-market multifamily, industrial, and retail properties.
With this CJ Townhomes acquisition, the firm is expanding its footprint across the state. In partnership with local firms in the area, Canopy Real Estate Partners highlights its commitment to providing opportunities and creating long-term value in the market.
