CalNeva Asset Management Co.'s first acquisition in the state is a four-year-old, 95%-leased development. "The buyer thinks the value in Arizona is much better over the long-term than in California," says Bob Bruno, a partner with Hendricks & Partners' Phoenix office.
Situated on 15.6 acres at 1616 W. Germann Rd., Montage at Pecos Ranch consists of 15 two- and three-story buildings. "This is a true class A complex in every respect," says Mark Forrester, who teamed with Bruno to sell the asset for Fairfield Pecos Ranch LP. The design includes 78 direct-access garages plus washers and dryers in every unit.
Bruno tells GlobeSt.com that the complex received more than 10 offers due to its location and quality. Montage at Pecos Range is located just five minutes from the 344-acre Arizona State University Research Park. "Chandler is one of the hottest markets in the Valley," he says. "The buyers are tickled to death with this property."
The complex is a mix of 156 one-, 94 two- and eight three-bedroom units. Apartments range from 615 sf to 1,235 sf while monthly rents go from $765 to $1,305.
According to Forrester, Montage at Pecos Ranch offers stable cash flow and some upside. "There's going to be some long-term appreciation given the quality of the asset and the market," he says. "We had some interest from REITs. They're starting to come out of the woodwork, but they weren't competitive with the private investors."
CalNeva Asset Management Co. obtained financing from Freddie Mac for 70% loan-to-cost to go along with exchange money from a Southern California multifamily sale. Jim Pierson of Phoenix-based Johnson Capital Partners of Arizona arranged the loan.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
