(Read more on the multifamily market.)
GLENDALE, AZ-A company, formed by investor James Almon of Private Portfolio Group in Seattle, has closed on the $41.24-million purchase of the 253-unit Metro at Zanjero. The seller was the developer, Ameriton Properties, a subsidiary of Archstone Smith Trust of Englewood, CO, which completed the project this summer.
Steve Nicoluzakis, Dave Fogler and Brent Moser of Grubb & Ellis/BRE in Phoenix represented both sides of the $163,000-per-unit transaction. According to Nicoluzakis, a senior vice president in the firm's multi-housing investment group, the deal was arranged before construction began at 9450 W. Cabela Dr. "We were under contract for over a year," he says.
Nicoluzakis tells GlobeSt.com that the project was designed to be sold as condominiums, but the developer opted to seek out a multifamily investor to buy it when the residential sales market slipped into a downturn. "It's a condo quality asset with granite counter tops, stainless steel appliances, Roman tubs and high ceilings. It's a nice asset. I think it was a great buy," he says.
Located within walking distance of the city's Downtown Dining District and the Jobing.com Arena, home of the Phoenix Coyotes and Arizona Sting, the project has a mix of studios and one, two and three-bedroom units with rents from $799 to $1,398 a month. Units range from 715 sf to 1,203 sf. Amenities include a resort-style pool and spa, fitness center, business center, barbecue area and outdoor sports lounge with entertainment bar and TV screens.
Leasing began in the third quarter. The project was 21% leased at the end of the quarter. Nicoluzakis says the local apartment market is stable, with rents expected to remain generally unchanged over the next year. The property is managed by Pillar Communities LLC, a wholly owned subsidiary of Private Portfolio Group based in Scottsdale. Private Portfolio Group is managed by Almon Investment Group LLC.
In the past three months, companies formed by Almon have invested more than $110 million to buy three multifamily assets totaling 724 units in the surrounding West Valley area. In September, an Almon entity paid $41.5 million or $134,740 per unit to buy the 308-unit Courtney Vista at Zanjero at 7455 N. 95th Ave. in Glendale. Nicoluzakis says Almon has indicated he is interested in purchasing additional multifamily properties in the Phoenix market.
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