(Read more on the multifamily market.)
PHOENIX-Looking to end a four-year hold and exit the metro, a Southern California investment company is bringing a five-property, 1,220-unit portfolio to market. The value-add portfolio is being offered for $78.6 million or $64,500 per unit.
Cindy Cooke, senior vice president with Colliers International's Phoenix office, says UK Capital Inc.'s plan from the start was to hold the assets for a time, then sell them. "They were one of the first buyers in the marketplace when things began turning around," she says. "Plus, the market improved dramatically. It was a good time for them to sell."
Cooke says the 93%-leased portfolio, averaging 25 years old, was well-maintained during UK Capital's ownership. "They show well. They're in good condition, but haven't had the updated finishing touches that you're seeing done a lot today," she says.
Cooke tells GlobeSt.com that the decision was made to sell the complexes in one package rather than accept single offers because of a growing demand for portfolios. All properties are infill locations, located west of Interstate 17. The area has seen a rental rate growth of 6% during the past year. She says part of the reason for the submarket's good showing is that it hasn't been competing with the single-family market as other areas have.
Cooke says the most likely buyers for the portfolio will be private investors backed by institutional capital. A call for offers hasn't been set. "If a buyer comes in at a price that's acceptable before we set the date, we're open to that," she adds.
The portfolio is a mix of studios and one- and two-bedroom units, averaging 725 sf. The average monthly rent is $550. Colliers vice president Brad Cooke of the Phoenix office and senior vice president Peter Scepanovic in the Carlsbad, CA office are teaming with Cooke to market the portfolio.
The portfolio consists of the following:
- 271-unit Spring Meadow, 10030 N. 43rd Ave., Glendale;
- 332-unit Sierra Pines, 9410 N. 31st Ave., Phoenix;
- 236-unit Tuscany Pointe, 14830 N. Black Canyon Hwy., Phoenix;
- 244-unit Marble Creek, 5601 W. McDowell Rd., Phoenix;
- 137-unit Villa Serena, 4221 W. Dunlap Ave., Phoenix.
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