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Irvine, CA-based Passco Cos has acquired a 218-unit multifamily community in Scottsdale, AZ, for $52.5M from Atlanta-based Wood Partners. We caught up with Passco SVP of acquisitions Gary Goodman, who tells us the new asset is still in its initial lease-up and has rents lower than its competition, making it an extremely smart acquisition for the firm.
Renamed Luxe Scottsdale (formerly Alta Scottsdale), this urban-style project was developed by Wood Partners in 2015 and is designed to appeal to Millennials.
Located at 8444 E Indian School Rd, the project is strategically situated at the gateway to Downtown Scottsdale’s vibrant retail market and dynamic, growing employment hub. “The vibrant downtown continues to attract new eateries and shops that Millennials want to incorporate into their live/work/play environment,” he says.
Downtown Scottsdale is experiencing unprecedented employment growth, particularly in the healthcare, tech and financial services sectors, according to Phoenix-based CBRE vice chairman of multifamily institutional properties Sean Cunningham, who along with colleagues Tyler Anderson, Asher Gunter and Matt Pesch, repped Wood Partners.
Proximity to advanced education, exceptional retail amenities, and excellent demographics are attracting top companies to Downtown Scottsdale, which already is home to Yelp, Zenefits, Scottsdale Healthcare, Weebly, Groupon, CA Technologies, McKesson, Softwench Solutions, Yodle, Theranos and Webfilings.
Gary says tech and healthcare companies, which employ young, educated employees, are filling up Downtown’s available office space and now another 1.5M SF of office space is in the works. “This of course translates into thousands of well-paid young professionals seeking the type of lifestyle and location Luxe Scottsdale offers.”
An ICC 700 National Green Building Standard Bronze-certified community, this project offers condo-quality finishes and resort-style amenities. Amenities include a pool area with spa (pictured), two-story clubhouse, 24-hour fitness center with state-of-the-art touch screen equipment, cyber café with space for events, and a commercial-grade dog washing station.
Units have 10-foot ceilings; kitchens with granite countertops and tile backsplashes, stainless steel appliances, contemporary cabinetry and under-mount sinks; vinyl plank-wood flooring; full-size washer/dryers; and patios or balconies.
Luxe Scottsdale’s gorgeous, modern apartments (pictured is the Clubhouse) and location in the coveted Downtown Scottsdale submarket provides a long-term competitive advantage in a market with high barriers to entry for future multifamily product, Goodman points out. He notes that close proximity to multiple employment centers, like Phoenix, Glendale and Tempe, also is enhancing renter demand in Scottsdale.
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