PHOENIX-Level at Sixteenth, one of the city’s newest, mid-rise apartment communities, has a new owner. A fund advised by Cornerstone Real Estate Advisers acquired 240-unit, infill property for $40 million from local developer, Alliance Residential.
The sale marks one of the largest multifamily deals to close this year in terms of overall price. And, at $166,667 per unit, the sale also markets one of the highest prices paid per units in 2011, according to Real Capital Analytics.
During the first half of 2011, nearly $800 million worth of Phoenix area apartment properties have changed hands, according to Real Capital Analytics. The average price per unit was $57,328.
Earlier this year, the 724-unit Trillium at Pinnacle Peak sold for $76 million, or $104,974 per unit, while Block 1949 in Tempe, with 234 units, traded for $52 million, or $222,222 per unit.
Mark Forrester and Ric Holway of Hendricks & Partners’ local office brokered the sale of the recently completed property. Located at 1550 East Campbell Ave. near the Camelback Corridor, Level at Sixteenth includes 46 studio, 102 one-bedroom, and 92 two-bedroom units.
Interior finishes include nine- and 18-foot ceilings, granite slab countertops, Berber carpeting and wood-style flooring. Community amenities include a resort-quality pool with water features and a two-story athletic center.
Alliance Residential will continue manage the property for the new owner. A local expert anticipates that the firm will re-invest proceeds from the sale into its current development projects.
Since 2001, Alliance Residential has invested $2.7 billion in the development of more than 20,000 units and $1.4 billion in the acquisition of more than 13,000 units. The firm plans to break ground on 5,000 units this year.
It already has several projects underway including: Broadstone Laurel Highlands, a 300-unit apartment and townhome project in Lorton, VA; and Broadstone Citrus Village, a 296-unit project in Tampa, FL. Later this year, Alliance Residential will break ground on Broadstone on Camelback, a 270-unit apartment project in Phoenix.
Neither the buyer nor the seller was able to provide interviews by GlobeSt.com’s deadline. Likewise, brokers from Hendricks & Partners also unavailable.
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