SCOTTSDALE, AZ-After an abbreviated due diligence period and speedy closing, PASSCO Companies LLC has acquired Desert Parks Vista Apartments for $32.6 million, which translates into a sub-6% cap rate.
The Irvine, CA-based investor bought the 202-unit luxury community from PB Bell Cos. in an all-cash transaction. The property is located within the exclusive DC Ranch master-planned community.
“By anyone’s measure, this is the finest apartment property in the state of Arizona,” says Gary Goodman of PASSCO. “This property is so unique in that it’s the only multifamily property to be built in DC Ranch, which is one of the highest income areas in Scottsdale. If you want to be a renter in DC Ranch you have one option and that’s our property.”
Located at 9393 E. Palo Brea Dr., Desert Parks Vista was the winner of the 2006 Developer’s Award from the Arizona Multihousing Association for “Best Community Design Built in Arizona 2004-2005.” It features Spanish mission-style architecture with shutter accents, gated access and one- and two-car garages. Other amenities include a resort-style swimming pool with spa, a conference room, state-of-the-art fitness center and a leasing center and clubhouse with plasma TV and fireplace.
Built in 2005, Desert Parks Vista features a mix of one, two and three-bedroom units ranging from 848 to 1,498 square feet. Monthly rents range from $1,289 to $3,000. Individual units feature nine-foot and vaulted ceilings, recessed and track lighting, granite countertops, maple wood cabinetry and Roman shades.
Desert Parks Vista was 95% occupied at the time of sale. “The high occupancy suggests that there is room to raise rents,” Goodman says. “And we think the property could be converted to condos done the road.”
Goodman says PASSCO has no immediate plans to convert the property. The firm plans to be a long-term holder.
Tyler Anderson and Sean Cunningham of CBRE’s Phoenix office represented PB Bell Cos. in the transaction. Goodman represented PASSCO.
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