(Read more on the multifamily market.)
PHOENIX-A Pacific Northwest buyer has made its first acquisition in the city, buying the 376-unit Fairways at Cave Creek from Atherton-Newport Investments LLC. The class B asset has brought $31.5 million in an off-market deal.
Cindy Cooke, senior vice president with Colliers International Inc.'s Phoenix office, negotiated the transaction between buyer and the Irvine, CA-based seller, who acquired the now 92%-leased complex at 2140 W. Thunderbird Rd. in spring 2006. Following some renovations, Atherton-Newport decided to sell, but then pulled it off the market to try to stabilize it.
At the same time, Cooke was working with Holland Partners of Vancouver, WA to structure a deal for the 548-unit Granite Bay Apartments at 14230 N. 19th Ave., which is around the corner from Fairways at Cave Creek. When Granite Bay instead was sold to Bethany Group LLC as part of a portfolio, Cooke immediately pointed Holland Partners in the direction of the Atherton-Newport asset.
"We'd had Fairways on the market for awhile, then took it off the market because the seller was trying to improve operations. There'd been several managers," Cooke tells GlobeSt.com. The Colliers' team included vice president Brad Cooke and marketing associate Carrie Burton.
Cooke says the Fairways' new owner plans to upgrade unit interiors. Built in 1981 on 12.71 acres, the 33-building Fairways at Cave Creek contains studios and one- and two-bedroom units ranging from 460 sf to 875 sf. The average monthly rent is $754.
Cooke says Holland Partners is actively seeking class B complexes in the area. "They want properties that they can add value to through their own in-house management or through capital improvements," she adds.
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