CHANDLER, AZ-Investment Property Associates has purchased 18 acres here with plans to develop a 322-unit apartment community called Campanello. The Grand Haven, MI-based firm is working with Scottsdale, AZ-based multifamily investor P.B. Bell Companies to get the luxury property off the ground.
“IPA is looking to amass a portfolio of 3,000 to 5,000 apartment units in the Phoenix area, and they plan to do that through both acquisitions of existing properties and new development,” says Brad Cooke of Colliers International’s Phoenix office.
Cooke represented IPA in the deal, along with partner Cindy Cooke. The duo assists IPA in their search for acquisitions and development opportunities.
Cooke tells GlobeSt.com that IPA was eager to break into the Chandler market because of the favorable employment environment. The city is home to several large employers including Wells Fargo, AmeriCredit and Intel, which recently announced plans to build a new $5 billion chip manufacturing facility adjacent to the company’s existing Ocotillo campus. Local experts expect the new plant will add 4,000 jobs.
“We expect job growth to drive demand for apartments in Chandler, and nothing has been built in the last four years,” Cooke explains, adding that the occupancy rate in Chandler is roughly 95%, and owners are already experiencing rent growth. “When IPA delivers Campanello in two years, they will be the first new product to come on the market in six years.”
Cooke says IPA specifically wanted to acquire land that was already entitled and “ready to go” so it could break ground on a project as soon as possible. “This site at the corner of Arizona Avenue and Queen Creek Road was the farthest along,” he explains, adding that it also offered the most attractive location. It is situated just a couple of blocks from Intel’s campus and will be part of Chandler Center, a 50-acre mixed-use development that will include office and retail space along with hotels.
IPA bought the land from Dobson Bell I Limited Partnership for $3.5 million. Cooke says IPA has the ability to finance the project’s construction without obtaining a loan, but will likely seek out financing not that the capital markets have thawed quite a bit.
The previous owners had already completed both site development and architectural plans for Campanello. The community will be a classic garden-style property with two- and three-story buildings including lofts over garages. It will offer a mix of one-, two- and three-bedroom units ranging from roughly 727 square feet to 1,258 square feet. Units will feature full appliance packages, custom cabinets, granite kitchen countertops, walk-in closets, multiple phone and cable lines and nine-foot ceilings.
Community amenities will include detached garages, covered parking, two resort style pools, three spas, a putting green, clubhouse with a state-of-the-art theatre room, fully-equipped exercise facility, and picnic areas with gas barbecue grills.
When Campanello is completed, IPA will own and manage approximately 1,100 apartment units in the greater Phoenix area including the 488-unit San Melia Apartments, which it acquired in October 2009.
Cooke says IPA also is looking for development sites in Scottsdale, Gilbert and Tempe.
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