New Metro Investor Scoops up Multifamily Near Tech Hub

Lush landscaping and poolside amenities are part of the Sorrento scene.

MESA, AZ—The Sorrento Apartment complex is located near five major employment hubs, including more than 80 technology companies along the Loop 101 Tech Corridor. The Loop 202, Loop 101 and SR 60 freeways are less than one mile from the property located at 901 S. Dobson Rd., providing easy access to the entire metro Phoenix area. In addition, Mesa Community College is within walking distance. The 226-unit apartment asset recently sold for $18 million or approximately $79,646 per unit. The buyer was a private investment company, Silverstone Moreno LLC , of Carlsbad, CA. This marks Silverstone’s entry into the metro Phoenix multifamily market. Cindy Cooke , senior executive vice president, and Brad Cooke , senior vice president, with Colliers International ‘s Phoenix office, represented the seller, Hamilton Zanze of San Francisco. The Cooke team originally represented Hamilton Zanze in its acquisition of Sorrento in 2010. “We owned Sorrento for a little over five years, and net operating income grew significantly during our ownership,” said Hamilton Zanze’s chief investment officer, Kurt Houtkooper . “We completed several capital projects, including upgrading unit interiors and improving the appearance of the property. The market supported an opportunistic sale at this time.” Sorrento Apartments is a strong class-B property with a 94% occupancy rate. The asset consists of 168,324 net rentable square feet with 14 garden-style, two-story buildings on 8.8 acres. Built in 1983, Sorrento underwent $2.5 million in exterior and amenity renovations in 2009 and 2013. “Sorrento offers the buyer a true value-add opportunity with its strong infill location in the heart of the Southeast Valley,” said Cindy Cooke. “This investment provides Silverstone Moreno excellent upside potential through interior upgrades and improvements to the common areas and community amenities.” The 226-unit community has a mix of 18 studios, 98 one- and 110 two-bedroom apartments, ranging from 413 square feet to 969 square feet. Interior features include new appliances in most units, well-equipped kitchens, separate dining rooms, patio or balcony, ceiling fans and walk-in closets. Amenities include a 24-hour fitness center, two pools, picnic area and barbecues, clubhouse, covered playground, laundry facility and extra storage. Cindy Cooke tells GlobeSt.com: “The immediate area surrounding the Sorrento Apartments is in high transition, impacted by the explosive employment growth of the Southeast Valley. Sorrento’s close proximity to Tempe, where rents have been soaring, makes it a strong asset. In addition, Sorrento is within walking distance to Mesa Community College and Banner Desert Medical Center .”