(Read more on the multifamily market.)
GLENDALE, AZ-Abacus Capital Group LLC has continued its investment in the market, paying $25 million for the Pavilions at Arrowhead. The 248-unit, class B-plus asset was the seller's last holding in the region.
Jerry Tenge, senior vice president with Colliers International's Phoenix office, says Wayne A. and Janis E Loftus of San Diego will likely redeploy their gain from the sale of 7400 W. Arrowhead Clubhouse Dr. into a 1031 exchange closer to home. Tenge represented the seller along with Colliers associate Josh Hirons and senior vice president Jon Busse.
Tenge says the listing attracted many offers in the $25-million to $30-million range. Ultimately, the New York City-based investment group's financial standing is what won the complex. "The money was already there and we didn't have to speculate on the financing side," Tenge tells GlobeSt.com.
Tenge says occupancy is 85% at the 11-year-old complex, which is slated to undergo some upgrades. "It won't be a huge overhaul, but cosmetic upgrades," he adds. "Physically, the property is very beautiful and there isn't a whole lot that needs fixing."
Situated on 14.56 acres, Pavilions at Arrowhead has 13 buildings with one- and two-bedroom units from 769 sf to 1,004 sf. The monthly rents range from $669 to $824.
Abacus Capital acquired Pavilions at Arrowhead less than six months after it bought the 312-unit Renaissance at South Mountain at 15251 S. 50th St. in Phoenix. Since the purchase, it's been renamed to Arboretum at South Mountain.
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