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$21-Mil Scottsdale Sale Indicative of Market's Momentum

SCOTTSDALE, AZ-Multifamily sales throughout the Valley are strong, with the latest buy coming in north Scottsdale. A 330-unit complex has wrought $21 million in just six weeks of being listed. It could be a banner year, say brokers.

By D.J. Burrough | Updated on August 15, 2001

SCOTTSDALE, AZ-The increasing pace of apartment sales in the Valley continues with the $21-million purchase of a 330-unit Scottsdale complex. A limited liability company headed by private investor Tom Kowalski, based in Englewood, CO, purchased the Joshua Tree Apartments at 11545 N. Frank Lloyd Wright Blvd. in the city’s north submarket. The sales price equates to more than $63,600 per unit.

“Historically, the Scottsdale multi-housing market has experienced high barriers to entry due to a limited number of available investments,” says Karl Abert, a broker with the Phoenix office of Marcus & Millichap. “In the face of the volatility of the national economy and the local real estate market, apartments are sound investments.”

The class B apartment, which was built 13 years ago, sold in six weeks, Abert says. “Despite this property’s age relative to the amount of surrounding new product, we were able to demonstrate to the buyer that with continued renovation and repositioning, as an investment, Joshua Tree has tremendous upside potential,” he adds. Kowalski plans to spend $750,000 in the next 12 to 18 months on improvements to the property. The Phoenix office of Marcus & Millichap, with brokers Abert and Peter Katz, negotiated the sale.

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