"It's amenity rich and a great location," Sean Cunningham, with CB Richard Ellis Inc.'s Phoenix office, said of Palm Valley Luxury Rentals, located in one of the fastest growing areas of the Valley.
The purchase also was a good deal for Investcorp, which owns a portfolio of more than 5,000 units throughout the country. "It's a class A property that they were able to buy at or below replacement pricing," Cunningham said.
The 1891 N. Litchfield Rd. property, built in two phases in 1997 and 1998, was the first multifamily complex in the Palm Valley master-planned community, a sprawling 9,000-acre development that is home to more than 5,000 residents. A second multifamily community, the 300-unit Remington Ranch, is set to open in Palm Valley next month.
Cunningham said Palm Valley Luxury Rentals drew at least six offers when it was put on the market two months ago by Butte Properties and joint venture partner, SunCor Development Co. The luxury complex is situated on the golf course's 18th fairway.
Comprised of a mix of one-, two- and three-bedroom apartments, the units feature open floor plans with nine-foot ceilings, designer kitchens and detached garages. The property also boasts lighted tennis courts, two pools and an exercise facility. Cunningham said the complex, which was 94% occupied at the time of sale, rents for an average of $883 per month for units that average about 900 sf.
Cunningham, along with Tyler Anderson, also of CB Richard Ellis, negotiated the deal for the seller. The buyer handled negotiations in house.
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