CHANDLER, AZ—Tech-centric multi-family locations attract tech workers and the Lakeside Apartment Homes exemplifies that phenomenon. The community, located in the Price Technology Corridor, recently sold for $22.3 million. There are 230 total units, of which 212 are rentals.
The Lakeside closing marks the sixth ABI Multifamily-brokered transaction during the past 18 months with the California-based buyer, Wood River Properties, a multifamily investor with units across the Phoenix Metro. This sale also marks the second ABI brokerage transaction between Wood River Properties and the seller, Security Properties Inc. In 2014, ABI transacted 151 unit-Miramonte Apartments in Scottsdale, AZ between the same two parties. Security Properties Inc. is a real estate enterprise with ownership responsibilities of more than 1,300 units under ownership/management across the Phoenix Metro.
"Location, location, location is the first, and ultimate, rubric for basing real estate transactions and Lakeside has it all," states Alon Shnitzer, senior managing partner at ABI Multifamily and lead broker for both parties in the transaction. "Lakeside is a truly unique project in that, one, it's juxtaposed to the man-made Andersen Springs Lake (not a lot of lakefront property in the Phoenix Metro) and, two, it sits at the northern end of the Price Technology Corridor, which is one of the most robust business corridors in the entire Phoenix Metro, often referred to as the Silicon Valley of Phoenix, which has witnessed 2,000+ job openings within the last year alone!!!"
Lakeside Apartment Homes is a two-story, garden style community, originally built in 1987, comprised of 39% one bedroom/one bath, 32% one bedroom plus den/one bath, and 29% two bedroom/two bath apartments with an overall average size of approximately 781 square feet. The property was converted to individually parceled condos in 2006, with select units being sold off to individual owners.
Each unit is individually metered for electricity and comes with dishwashers, garbage disposals, ceiling fans and a large private patio-balcony with generous storage space. A portion of the units have exclusive lake views and may also contain vaulted ceilings, wood burning fireplaces and in-unit washer/dryer. Select additional units have been newly remodeled with new appliances, upgraded flooring, new countertops and cabinets.
The community also provides its residents with a 24-hour fitness center including one pool (of two total pools) and clubhouse with business center overlooking Andersen Springs Lake, heated spa, nature trails, picnic pavilions, gas barbecue grills, laundry facility, tennis and basketball court, and ample covered and open parking.
The Phoenix-based ABI Multifamily brokerage team of Shnitzer, John Kobierowski, Rue Bax, Doug Lazovick and Eddie Chang represented both the buyer and the seller in this transaction. ABI Multifamily is a brokerage and advisory services firm that focuses exclusively on apartment investment transactions.
Shnitzer tells GlobeSt.com: "This was a unique opportunity whereby the property is slowly being pieced back together. As a result of the condo conversion in 2006 and sales of some of those units to individuals, Lakeside had fractured ownership. The seller in this transaction has pieced this back together and was able to deliver over 90% of the units at the property (212 of 230), making it much more attractive to a buyer/lender, etc. The buyer's long-term plans would be to continue piecing this property back together."
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
