Colliers Assists In Massive Apartment Sale
With the help from some NYC investment money, Phoenix-based PB Bell made its biggest multifamily portfolio purchase ever. (Normally NY only comes to Phoenix to golf or play against the Diamondbacks.)
PB Bell—along with NY-based Stonecutter—purchased a more than 2,700-unit apartment portfolio for $168.5M from the Standard Phoenix Fund. The duo responsible for the sale was Colliers International's mother/son team of Cindy and Brad Cooke, which also ranks among the largest single multifamily transactions in Phoenix this year.
Many of the properties are located in the Southeast Valley, the Cammelback Corridor and even one across from Arizona State University's West Campus, and include the 320-unit Alante at the Islands; 460-unit Laguna Village (here), both in Chandler; the 582-unit Tuscany Palms in Mesa; the 395-unit Sienna Springs off N. 15th St in Phoenix and the 196-unit Tela Verde in Glendale.
Soon after buying, the Great Recession saw occupancy tumble at the properties to the 60% and 70% range. Phoenix Fund took over these particular properties and managed to stabilize them back to an average of 96% occupancy, she says. While stabilized, it's now about rent growth. By renovating the units, the duo tells us PB Bell can see rents jump between $50/SF and $200/SF per unit.
And here's proof Cindy and Brad are mother/son. This is the second time the Cooke team has sold these seven assets; the first time as part of a 12-property portfolio in 2007 for $427.5 million, which is still the largest multifamily deal ever in Phoenix. And recent job growth certainly will help. “Every time you open the papers, it's like somebody is adding another 1,000 to 2,000 employees,” Brad adds.