CHANDLER, AZ-A highly-sought after luxury apartment community has traded for $43.5 million – $400,000 more than its asking price. A Seattle, WA-based investor beat out 44 other prospective buyers to nab Biscayne Bay, a 512-unit property located at 300 E. Warner Rd.
Private Portfolio Group LLC acquired the 10-year old property at a 5.75% cap rate, according to Tyler Anderson, vice chairman of CB Richard Ellis. He and Sean Cunningham, also a vice chairman with CBRE, negotiated the deal on behalf of the seller, Chicago-based Waterton Residential doing business as Fund IX BB Chandler LLC.
Biscayne Bay represents one of the largest multifamily sales in the Phoenix metro area this year, if not the largest. “This deal let the rest of the market know how much activity and interest investors have in the Phoenix area,” Anderson tells GlobeSt. “This demonstrates that there is strong buyer demand for quality assets.”
The pricing, in particular, indicates that the acquisitions market is improving and proves that investors think Phoenix is positioned to recover. “They consider the market’s current revenue slump a temporary situation and believe that higher-end assets, like Biscayne Bay, will offer the greatest potential for strong occupancy and rental growth in the near future,” Anderson says.
Located in one of the Southeast Valley’s main employment corridors, Biscayne Bay offers a mix of one, two and three-bedroom units with nine-foot ceilings, oversized dual-pane windows, ceramic tile entryways, decorative lighted ceiling fans and private patios and balconies.
Units range from 740 square feet to 1,320 square feet and rent for $887 to $1,279 per month. The property was 98% occupied at the time of sale.
Biscayne Bay offers numerous resident amenities including: two resort-style swimming pools with spas and expansive sundecks; volleyball and basketball courts; a putting green; barbecue and picnic areas; and a children’s play area. Residents also have access to a fully-equipped fitness center, indoor racquetball court, dry sauna and business center, as well as billiards and theater rooms.
With the acquisition of Biscayne Bay, Private Portfolio Group now owns 13 multifamily properties in the Phoenix metro area, Anderson says. The company obtained acquisition financing from a life insurance company.
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