The San Diego-based Fairfield assumed the existing bond financing for the complex at 701 W. Grove Pkwy., says Tyler Anderson, an executive vice president with CB Richard Ellis Inc. "This is a solid class B asset in a solid market," he says, adding the company buys assets with the intention of selling down the road.
Pinnacle Grove is located in south Tempe, which has significant barriers to entry for future multifamily development. Moreover, it is close to Interstate 10 and Sky Harbor International Airport and just minutes from major retail trades areas, including the Grove.
Anderson tells GlobeSt.com that the 17-year-old Pinnacle Grove, which had a list price of $13.8 million, generated 12 offers during its 45 days on the market. "Fairfield saw the opportunity to add some value by upgrading the property," says Anderson, who represented the seller, ITCR Elliot Grove LP, a pool of investors from across the US. Fairfield Residential relied on an in-house team to broker its terms.
The complex, which is 93% occupied, contains 167 one-bedroom units and 80 two-bedroom apartments, averaging 829 sf. The average monthly rent is $665 or about 80 cents per sf.
Fairfield Residential now owns 12 apartment complexes, with more than 2,500 units, in the Phoenix Valley. The portfolio has one asset each in Chandler, Glendale, Scottsdale and Peoria while there are two in Tempe and six in Phoenix.
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