Colliers International has been retained as the exclusive marketing agent for The Paragon at Kierland, a 276-unit Class A luxury apartment property at 15608 N. 71st St. in Scottsdale.
Jerry Tenge, senior vice president of multi-family investments with Colliers in Greater Phoenix, represents the seller, Sunstone Realty Advisors of Vancouver, Canada. Tenge previously negotiated the acquisition of The Paragon on behalf of Sunstone in November 2009. The call for offers date is June 12, 2013
“The Paragon presents tremendous value-add opportunity as an investment property. The interiors underwent partial upgrades in 2008, but could continue to be further upgraded to improve rents, which already command a 25% premium in Scottsdale over Greater Phoenix as a whole,” Tenge said.
Alternatively, the complex could be completely upgraded and sold as condominiums.
Strengthening demand in the Kierland area has been attracting investors and developers, according to Pete O’Neil, research manager for Colliers.
Tight Class A multi-family vacancy averages around 4.2% and rents exceed $1,100 per month in the area, supported by elevated household incomes and prominent area employers.
“This condo-quality asset is one of the most attractive multifamily investment properties available in Scottsdale due to these strong operating fundamentals,” asserts Tenge.
Built in 2000, The Paragon consists of 289,233 RSF in 23, three-story buildings, along with a single-story recreation building, set on approximately 10.4 acres. The unit mix includes one-, two- and three-bedroom units ranging in size from 924 SF to 1,323 SF.
Current occupancy is at 98%. Unit amenities include gourmet chef’s kitchens, ceramic countertops, custom cabinetry, built-in microwaves, full-size washers and dryers, oversized walk-in closets and large private patios or balconies in select units.
The Paragon is located in Scottsdale’s Kierland neighborhood, just west of the Loop 101 and Scottsdale Road. The property is situated in a resort-like setting along the Westin Kierland Golf Club at the Westin Kierland Resort & Spa and is within walking distance of 30 prime restaurants and more than 100 specialty shops at Kierland Commons and Scottsdale Quarter.