Out-Of-Towners Still Eager For More Phoenix Apartments
Within days of each other, two major Phoenix apartment properties traded hands, both to out-of-state investors. Both investors are old hands in the Phoenix market, and they still want to be in on the multifamily action in Phoenix — at least in submarkets with job and population growth prospects.
The 180-unit Mandarina Luxury Apartment Homes in Phoenix traded recently for $25M. The buyer was Denver-based Capital Real Estate, which now owns 2,449 units in 11 Valley apartment properties. The seller was a private entity, NMS Property Services.
"The attractiveness of Mandarina is due to the large number of jobs surrounding the complex — the immediate area features one of the Valley’s strongest workforce populations," Orion Investment Real Estate's Matt Roach said. Along with his colleague Christopher Roach, he repped the seller.
At 5402 East Washington St., Mandarina is adjacent to Papago Park Center, a 350-acre mixed-use development with over 3M SF of commercial space. "This area has already seen a tremendous amount of growth and is continuing to expand," Matt Roach said. The 2002 asset, which NMS obtained in 2006, was the seller's last Phoenix property. It is along the Valley Metro Light Rail, and 95% occupied.
In a separate deal, the 213-unit Terrace Park apartment community at 8130 West Indian School Road sold to a Canadian investor for $14.2M. The purchase marked an expansion of Western Wealth Capital’s portfolio in metro Phoenix to 20 apartment properties. BH Properties, a private equity company based in Santa Monica, sold the property.
“Terrace Park is located in what will be a dynamic growth area of West Phoenix,” Colliers International in Greater Phoenix's Trevor Koskovich said. “The Loop 101 area of West Phoenix is attracting substantial business activity and job creation.” Koskovich, along with colleagues Jeff Sherman and Bill Hahn, facilitated the deal. The 1984 property is about 92% occupied.