Skywater at Town Lake Apartments

Product Type: Skywater at Town Lake Apartments (the “Project”) is a 328-unit mid-rise apartment community consisting of a 2-level, cast-in-place concrete podium parking structure, together with 4-story apartment buildings above, and many top tier resident amenities. These resident amenities include a clubhouse with clubroom, fitness center, leasing office, swimming pool, spa, outdoor cooking areas, fire pits, bocce ball court, gourmet coffee shop, and an entry designed and dedicated for food truck access and catering services for residents, guests, and the surrounding neighborhood.

Location: 601 West Rio Salado Parkway Tempe, Arizona 85281 — Situated in north Tempe and adjacent to Tempe Town Lake, the Project is located just west of the downtown Mill Avenue entertainment district of Tempe and the main campus of Arizona State University. This location lies just south of State Route 202 and just east of State Route 143, providing centralized access to many nearby amenities and prominent job centers located just 10 minutes away, including downtown Tempe, downtown Phoenix, Desert Ridge, and North Scottsdale.

Project Description

Opportunity: In 2012, Tilton & Associates learned that Evergreen Devco Inc. of Phoenix, Arizona, a successful retail developer, was interested in expanding its development, construction, and property management operations to include multifamily residential apartments as new product type. At that time, Tilton & Associates responded to a request for proposal from Evergreen to perform various development consulting services generally inclusive of: (a) developing a business plan, (b) sourcing several ground-up development opportunities, (c) completing all financial underwriting and due diligence activities, (d) contracting with and managing the design consultants and pre-construction contractor, (e) assisting with equity and debt financing, (f) securing entitlements, and (g) closing the acquisition and construction loan for each project.

Approach: In 2012 and 2013, Tilton & Associates provided site specific development consulting services to Evergreen to successfully acquire control of the underlying Project property, assisted with the management of the purchase and sale agreement, prepared the initial financial underwriting, administered the due diligence investigations, managed the design consultants, preconstruction services, secured the entitlements to rezone the property from industrial to mixed-use, and secured final site plan approval for the Project. Tilton & Associates also successfully negotiated the required buyout of an existing cellular telephone tower that occupied the property, together with related carrier agreements and physical appurtenances to permit the unencumbered development of the Project.

Outcome: In 2014, Evergreen Devco Inc. sold the property, the accompanying entitlements, and construction documents to complete its business plan.