Deal Tracker: Apartment Sales Go Up, Up, Up

The Park at Deer Valley is a 436-unit class-B asset in Phoenix.

PHOENIX—As Phoenix apartments remain essentially full at around 95% occupancy, the metro’s annual rent growth accelerated to a nine-year high of 7.2% in first quarter 2016, according to MPF Research . There have been numerous multifamily sales in the last six weeks. In Chandler, AZ, a sale of the 374-unit Crosswinds Apartment Homes at 868 S. Arizona Ave. was completed for $22 million or approximately $58,824 per unit. The self-represented buyer was Emma Capital Investments Inc. of Toronto, Canada, ON. The sellers were P.B. Bell of Scottsdale, AZ, and Stonecutter Capital Management LLC of New York City, which originally acquired the asset in 2014. Crosswinds is in an area of robust growth with an ever-expanding job market. The community is strategically located less than one mile south of downtown Chandler, one-half mile from the Loop 202 freeway and just east of the Loop 101/Price Road corridor, providing easy access to the entire metro area. Built in 1986, Crosswinds is a 374-unit class-B garden-style apartment community with 17 two-story buildings set on approximately 10.94 acres. The property consists of 147,556 net rentable square feet with 120 studios, 248 one bedrooms and six two-bedroom units, ranging from 327 to 836 square feet. Common area amenities include a pool and spa, fitness center, tennis and basketball courts, 24-hour laundry facilities, playground, barbecues, picnic areas and covered parking. Cindy Cooke , senior executive vice president, and Brad Cooke , senior vice president, with Colliers ‘ Phoenix office, represented the sellers. In Phoenix, The Park at Deer Valley apartments at 17425 N. 19th Ave. has been sold for $33 million or $75,688 per unit. The seller was Bruckal Properties Inc. of Kelowna, Canada, BC. The buyer was a private investor, Billah Khan of Phoenix. Plans call for continuing interior and exterior upgrades started by the seller, which completed more than $3 million in renovations. Built in 1984, The Park at Deer Valley is a 436-unit class-B asset consisting of 37 two-story buildings on approximately 16.59 acres. The unit mix offers 40 one-bedroom and 396 two-bedroom apartments ranging from 604 square feet to 948 square feet. Vacancy at the time of sale was 95%. Unit amenities include open living areas, fully equipped kitchens, new carpeting and ceiling fans. Common amenities include a clubhouse with Wi-Fi access, two swimming pools, spa, basketball court, gym, playground, laundry, barbecues, outdoor deck area with fire pit and a dog park. Executive vice presidents Bill Hahn, Jeff Sherman and Trevor Koskovich with Colliers’ Phoenix office represented both the buyer and seller. Hahn tells GlobeSt.com: “The Deer Valley market continues to experience occupancy and rent growth. Investors are drawn to those trends and the area’s strong corporate employers, such as USAA, Karsten Manufacturing, Wells Fargo Bank and Bull HN Information Systems .” These two deals join another recent apartment mega-deal in Glendale, AZ. San Francisco-based real estate company, Hamilton Zanze , recently acquired Tresa at Arrowhead for $47 million or $130,556 per unit. The 360-unit class B+ apartment community is located approximately 10 miles northwest of Downtown Phoenix. Tresa at Arrowhead was built in 1998 and is 0.5 miles from the Arrowhead Towne Center and 1 mile from the P83 Entertainment District. This district’s Peoria Sports Complex is used by the Seattle Mariners and San Diego Padres for spring training. Major local employers include Blue Cross and Blue Shield of Arizona, Mayo Clinic, Arizona State University, Karsten Manufacturing, Amica Mutual Insurance, Arizona Power Services, Wells Fargo Home Mortgage and Suntec Concrete . “We are thrilled to purchase a pristine asset with access to 3 million square feet of retail, the P83 Entertainment District and 265,000 square feet of office across the street in a supply-constrained submarket of Phoenix,” says Hamilton Zanze’s managing director David Nelson . Hamilton Zanze plans to execute a $1.62 million capital improvement program, including unit upgrades and a clubhouse remodel. Property management will transition to Denver-based Mission Rock Residential .