PHOENIX—ABI Multifamily has closed the $28 million sale of the 160-unit Morningside Apartment Homes in Scottsdale.
Morningside, originally built in 1989, features spacious one, two and three-bedroom units with an average size of approximately 1,019 square feet and full size washer/dryer in each unit. The seller, FSC Realty, in the past 2 years completed over $600,000 in exterior and interior renovations to Morningside.
“This is an amazing deal, for both buyer and seller,” states Alon Shnitzer, senior managing partner at ABI. “The buyer, Wood River Properties, wanted to find a stable, high quality asset to purchase after their recent Sonoran Ridge and Quail Canyon Apartments sales. This acquisition of Morningside offers them an extremely low density, best-in-class, stable asset, with the additional upside of completing the balance of the interior renovations and significant redevelopment upside should the landsite at Morningside ever built-out to its existing high density R-5 zoning designation. In March of 2013 the current seller, Beverly Hills based-FSC Realty, purchased Morningside from the largest REIT in the nation. It was a tremendous purchase, as they only paid $21,600,000 at that time, and through the renovation upside had instantaneous equity in the property.”
The property is located in the prestigious Scottsdale Ranch master planned community. The Scottsdale Ranch community offers residents recreation opportunities including: the 42-acre man-made Lake Serena with boating and fishing activities, as well as a fully appointed community center. Directly across the street from Morningside are the Via Linda Senior Center, Scottsdale Ranch Park and Tennis Center, Boys & Girls Club of Greater Scottsdale, Laguna Elementary School and MVLL AAA Baseball Field. Additionally, the property is only minutes from major transportation corridors, Loop 101 and Shea Blvd., which provide direct access to all of Scottsdale's fine dining, entertainment and the well-known Scottsdale-Shea Regional Hospital. Morningside Apartment Homes sits on nearly 10-acres of land, with 18 total buildings and a dedicated leasing center/clubhouse that was recently remodeled. Additionally, all commons areas, pool and exterior/select interiors of the buildings were upgraded.
The buyer in this transaction is an experienced Phoenix Metro multifamily investor, Wood River Properties, based in Santa Monica. Wood River Properties was also represented by ABI Multifamily in the sale of the Sonoran Ridge Apartments, for Lennar Multifamily's Tempe assemblage site, The Motely, and in the sale of Quail Canyon Apartments to Canada-based, Living Wells Homes, just last month.
The Phoenix based ABI Multifamily brokerage team of Alon Shnitzer, John Kobierowski, Rue Bax, Doug Lazovick and Eddie Chang represented both buyer and seller in this transaction.
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