Phoenix Area Multifamily Trades for $63M
Knightvest Capital has purchased the 300-unit property, Signature Place in Tempe, AZ; furthering the region’s robust multifamily activity.
TEMPE, AZ – Western Wealth Capital has sold its 300-unit multifamily community, Signature Place in South Tempe, AZ, for $62.5 million to Knightvest Capital.
The multifamily asset, located at 600 W. Grove Parkway offers two resort-style swimming pools, a fitness center, lighted tennis courts and outdoor grilling areas. The property’s units feature nine-foot ceilings, fully-equipped kitchens, in-unit washers and dryings and private patios. Certain community units additionally offer walk-in closets, dual vanities and fireplaces.
“Signature Place is a great addition to our Phoenix portfolio,” said Phil Lake, Knightvest Capital’s SVP of acquisitions. “The seller was cognizant of the unique transaction environment and together we were able to deliver an outcome that was mutually beneficial. Signature Place will give us the opportunity to once again demonstrate our strength as a vertically integrated value-add buyer and provide a high-quality community to our residents, while helping our partners achieve a tremendous result.”
Through the acquisition, Knightvest Capital aims to capitalize on the Phoenix-area multifamily market, which recorded a near-record low, 3.9% vacancy rate in Q1 2020. The vacancy rate increased to 4.5% at the end of Q2 upon the pandemic onset, according to CBRE Econometric Advisors.
Out of the 29 largest US metropolitan areas, Phoenix additionally executed the strongest one-year total return of 10.5% for multifamily investments in Q2; comprising 5.5% appreciation return and 5% income return, according to the National Council of Real Estate Investment Fiduciaries.
CBRE Phoenix Multifamily Institutional Properties’ Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch arranged the sale on behalf of the seller.
“Signature Place went to market before the pandemic onset and generated significant interest,” said Pesch. “Getting this deal across the finish line during the pandemic is a testament to the resiliency of both the buyer and seller. The underlying economic fundamentals in Phoenix are sound and the market is still a hot target for multifamily acquisitions.”
“Signature Place is another great example of the successful execution of our disciplined value-add system. It was great to work with a team who was just as dedicated to seeing this sale through,” said Western Wealth Capital’s CEO, Janet Lepage.
