Newly built, 95% leased asset purchased below replacement cost

SCOTTSDALE, Ariz., March 31, 2026 /PRNewswire/ -- Canopy Real Estate Partners has acquired CJ Townhomes, a newly constructed 36-unit multifamily community in Mesa, Ariz. for $13.39 million.

The property, built in 2024 and located at 3426 E University Drive, consists of three-bedroom townhomes with attached two-car garages and private yards, along with amenities including a pool, spa and outdoor gathering spaces.

The acquisition of the fully leased property was the result of prior ownership distressed capital stack. Despite the project being fully leased, construction cost overruns and existing debt pressures contributed to the property being sold for a discount to replacement cost. Acquiring well-performing assets due to distressed capital stacks is a hallmark of Canopy's acquisitions, according to Canopy Real Estate Partners co-founder Jay Rollins.

Locally, the transaction was led by Canopy Arizona multifamily "Market Partner" TBBG Investments. TBBG will oversee the day to day operations and execute the asset's business plan as part of its ongoing partnership with Canopy.

"This is a high-quality, newly built asset in one of the strongest rental submarkets in the Phoenix area," said 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."

According to Rollins, all distress cycles are different. This cycle features "capital stack distress," not property level distress, which is different from prior cycles and provides an excellent buying opportunity.

CJ Townhomes, now being rebranded as The Sonoran Townhomes, includes 36 units totaling approximately 61,670 square feet. The firm expects the investment to generate steady in-place income with additional upside through rent optimization over the hold period.

"Canopy's model is highly differentiated in the middle market," said Andrew Biskind, co-founder of TBBG. "They provide the capital, structure and institutional oversight, while allowing us to focus on what we do best locally, which is sourcing, operating and executing on the business plan."

The acquisition is part of Canopy Fund I, a $75 million fund focused on acquiring middle-market multifamily, industrial and retail properties across the Western United States.

Canopy said it continues to target opportunities where pricing is being driven by financing conditions and limited liquidity.

About Canopy Real Estate Partners

Canopy Real Estate Partners is a commercial real estate investment firm focused on acquiring value-add multifamily, industrial and retail assets across the Western United States. The firm invests directly in its core markets and creates Market Partner relationships in non-core markets, while applying institutional underwriting, asset management and governance standards to middle-market investments.

Canopy Real Estate Partners was founded by Jay Rollins and Tucker Manion. For more information, visit canopyrepartners.com.

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SOURCE Canopy Real Estate Partners