PHOENIX, AZ - Phoenix-based apartment developer Gray and The Picerne Group announced that a motion to dismiss was approved December 15 in the Chapter 11 bankruptcy case of the owner of Grigio Tempe Town Lake Apartments. Gray reached a consensual agreement with The Picerne Group, a real estate investment and asset management firm headquartered in San Juan Capistrano, California, and one of Grigio's lenders. The agreement involves transferring ownership of Grigio to Picerne, with Gray holding an option to repurchase Grigio anytime within the next three years. An affiliate of Gray will continue as the property management company, running day-to-day operations.
"We're glad that this Chapter 11 case has been quickly resolved," said Bruce Gray, founder and chairman of Gray. "Our staff has been working very hard in recent months to find a suitable solution for Grigio, and we're pleased with the agreement with The Picerne Group. This gives all parties involved a positive result moving ahead into 2011. Most importantly, nothing will change for Grigio residents. We remain committed to providing our residents with a superb living experience."
"Gray has done a great job in designing, developing and managing this property," said Kenneth A. Picerne, Founder, President and Chairman of the Board of The Picerne Group. "We intend to keep it that way. We are anxious to move our new relationship with Gray forward."
Gray started construction on the 523-unit Grigio in February 2005. Grigio is the only apartment community to be constructed on Tempe Town Lake and in 2008 was named the National Apartment Association's 2008 Apartment Community of the Year in the US. Gray has managed its operations since opening to renters in September 2006.
Grigio was forced into bankruptcy due to loan maturities and its inability to secure new financing during the current worldwide financial crises. While this was a necessary step to address its financing challenges, Grigio has been a very successful community and made money for some time.
Founded in 1991 by Bruce Gray, Gray is a fully-integrated real estate development company, including architecture, construction and property management. Gray has been recognized nine of the past 11 years as the state's top-ranked multifamily developer, building and operating innovative, high-quality apartment communities throughout the metropolitan Phoenix. Gray has expanded to California, and has plans to expand to other western states. Gray has developed over 8,000 apartments, and currently manages nearly 3,000 units.
Founded in 1988, The Picerne Group is a privately held U.S. corporation, based in Southern California. The Picerne Group focuses on domestic and international real estate investments, as well as best-in-class asset management. Over the past 20 years, The Picerne Group has successfully invested several billion dollars in real estate equity and debt, diversifying investments across a variety of property types and geographies.
Source: Gray