(Read more on the multifamily market.)
TEMPE, AZ-The 466-unit Rio Salado, part of a 2,434-unit portfolio brought to market in June, has been sold to JPMorgan Chase & Co. for $84.7 million. In turn, Trillium Residential LLC has pulled the remaining high-end assets, many unfinished, off the market.
Tyler Anderson, vice chairman for CB Richard Ellis in Phoenix, says there were pre-sale offers for the other complexes as well as Rio Salado at 1033 N. Parkside Dr. "Due to the capital markets, it really impacted the pricing negatively on the other projects," he tells GlobeSt.com. "The market has changed to a more fundamental one, which is demanding stabilized properties." As a result, the Tempe-based developer plans to sell the remaining assets as one-offs as they come on line and are stabilized.
Anderson says the 96%-leased Rio Salado is a core asset and a stable one that generated many offers. JPMorgan Chase's strength in closing deals was the dealmaker for the seller, says Anderson, who partnered on the sale with CBRE vice chairman Sean Cunningham and first vice president Jack Hannum.
Anderson says the Rio Salado sale, at $182,000 per unit, is not the highest the market has seen in recent years. "We've had a number of buildings trading here at $200,000 per unit in the past," he says. "But given the market conditions, this could be the high-water mark for this year."
Completed in 2006, Rio Salado has a mix of studio units as well as one-, two- and three-bedroom apartments measuring from 849 sf to 1,273 sf. Monthly rents go from $1,002 to $1,723. Sares-Regis Group in Irvine, CA will lease and manage the complex for the New York City-based buyer.
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