Oregon Buyer's $16M Snags 180-Unit Complex

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PHOENIX-More than 20 years after going vertical with the 180-unit Paradise Foothills, a local developer has opted to sell the class B complex at a 5.5% cap rate. A Portland, OR investor, buying its third property in the area, has paid $16.4 million and plans an additional million-dollar upgrade of the complex’s interiors and exteriors.

According to CB Richard Ellis vice chairman Sean Cunningham, the 93%-leased asset at 12231 N. 19th Ave. was put on the block because Picerne Development Corp. is divesting various class B assets from its portfolio. Paradise Hills is its last class B in the Phoenix metro. “They’re repositioning that money into new construction in Phoenix and Las Vegas so this is a strategic move for Picerne,” says Cunningham, who represented the seller with CBRE partner Tyler Anderson.