PHOENIX-Weidner Investment Services has acquired the 258-unit Monterra, a class A apartment complex, for $16.7 million in an off-market transaction. The company bought the property from Aslan Realty Partners, a Chicago-based investment fund.
Monterra is the first of several multifamily acquisitions the Kirkland, WA-based company plans to make in the Phoenix metro area, according to Jack Hannum, a vice president with Transwestern’s local office. He and partner Bret Zinn, also a vice president with Transwestern, brokered the deal.
Weidner plans to add 3,000 units to its Phoenix portfolio over the next 18 to 24 months, according to Hannum. He tells GlobeSt. that he and Zinn first discussed the Weidner’s desire to invest in Phoenix multifamily while attending the National Multi-Housing Conference earlier this year. “They were looking for better quality product in a good location,” he says.
Around the same time, Zinn spoke to Aslan Realty Partners about selling Monterra, which the fund acquired in 2005. The team brought Weidner and Aslan Realty Partners together, and Weidner acquire Monterra in an all-cash transaction.
“Weidner was able to acquire Monterra for $65,000 per unit – well below replacement cost,” Hannum points out. “We believe they’re buying at the bottom of the market.”
Zinn says Weidner plans to own the property on a long-term basis to take advantage of increasing net rental income and diminishing vacancies as the Phoenix market begins its recovery over the next 18 months. The team says the deal illustrates buyers’ desire to invest in Phoenix.
Monterra is located in an urban-infill area near the Loop 202 at 1333 N. 24th St. It is centrally located to central Phoenix, Sky Harbor International Airport, Scottsdale, Tempe and the Camelback Corridor.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
