PHOENIX—The Phoenix office of Jones Lang LaSalle has completed the $18.1 million investment sale of Indigo, a formerly fractured Phoenix condominium asset that over 24 months was transformed into a 108-unit class A apartment community.
JLL executive vice president John Cunningham and JLL vice president Charles Steele represented the seller, Seattle-based Goodman Real Estate. The buyer was Belkorp Holdings, Inc.
Indigo is located at 16160 S. 50th Street, near I-10 and Chandler Boulevard in Phoenix's Ahwatukee submarket. Goodman purchased the property in 2013 as a fractured multifamily development, with 17 of its 30 Class A units previously sold as condominiums and with the infrastructure in place to build an additional 78 units.
Cunningham tells GlobeSt.com, “The most challenging part of this deal was that it was a fractured community, with some for rent and some owned. Over 24 months, the former owner acquired many of the previously sold units and developed the additional 78 units to de-fracture the 108-unit community to 101 rental units and seven individually owned units. That made for a much more straightforward execution.”
Today, Indigo features one- and two-bedroom, open-concept floorplans ranging from 903 square feet to 1,524 square feet. Unit amenities include stainless steel appliances, granite countertops, in-home washers and dryers, walk-in closets and personal patios or balconies. On-site amenities include a resident lounge, fitness center and resort-style pool and spa with cabanas and barbeques.
“The submarket is strong,” says Cunningham, “with good schools, it's convenient to employers. It's a good target market for investors.”
The project currently sits at 94% occupied.
“Phoenix added more than 55,000 jobs last year, which helped push the metro multifamily vacancy rate to 5 percent,” states Steele. “While single family home starts continue to lag the long-term trend, we feel that robust employment and population growth will be the catalyst for stronger absorption of multifamily units in the coming years.”
“Goodman recognized the potential of Indigo as a rental versus for sale project, and simultaneously executed a development and buy-back strategy to 'de-fracture' the community,” says Cunningham. “This is a great case study demonstrating the recovery of our multifamily market.”
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