Investment Properties Group of Calgary has gotten more than $63,000 per unit for its Casa Santa Fe Apartments, a 264-unit complex in north Scottsdale. "There are still a lot of buyers out there," Brad Goff, the seller's broker from the Phoenix office of Insignia/ESG, tells GlobeSt.com. "There are a lot of dollars chasing not a lot of deals." Arcadia Villa Apartments LLC, a Scottsdale group, is the buyer and was represented by Robert Chester of Realty Executives' Phoenix office.
Goff says his client, Investment Properties Group, opted to liquidate its Valley apartment holdings not because of any market trigger, but because of internal timing. The publicly traded firm will funnel the proceeds dividends for its shareholders.
Earlier this year, Investment Properties Group sold the Scottsdale Foothills, a 330-unit complex at 9259 E. Raintree Dr. for $20.75 million; and Joshua Tree Apartments, a 330-unit complex at 11545 N. Frank Lloyd Wright Blvd. for $21 million.
The Casa Santa Fe Apartments, built in 1987 and 93% occupied at sale time, are located at 11105 N. 115th St. The complex is just north of Shea Boulevard and east of 114th Street, adjacent to the Central Arizona Project Canal. The apartments are about three miles east of the Pima Freeway section of Loop 101 and a few miles from the investment group's other sold complexes.
Class B and C complexes are in greater demand than in the past, Goff says. With the lower interest rates, renters of class A apartments are able to make the leap to homeownership, which many are doing, while tenants in class B and C properties are staying put.
Goff says overall values for apartment complexes are rising slightly. "We are seeing other buyers move from office and industrial into multifamily," he says. "Multifamily is viewed in uncertain economic times as a relative safe haven and people are flocking toward safety." While Phoenix's growth isn't as dynamic as it was this time last year, the long-term prospects for the Valley are attractive to apartment investors, he says.
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