Colliers International in Greater Phoenix completed the sale of the Sonoma Terrace apartments at 5220 W. Northern Ave., in Glendale, Arizona, for $15.35 million or approximately $59,038 per unit.
Executive Vice Presidents Trevor Koskovich, Bill Hahn and Jeff Sherman, with Colliers’ Phoenix office, represented both the seller and buyer. The seller was Mentor Properties, Inc., of Scottsdale, Arizona.
The buyer was Phoenix-based 3rd Ave Investments, a real estate investment and management firm specializing in Arizona multifamily assets. Financing was arranged through Walker & Dunlop LLC, with a loan to purchase price ratio of approximately 75 percent. This marks the firm’s seventh multifamily acquisition in metro Phoenix since early 2015.
“This transaction is indicative of a strengthening multifamily market in the West Valley,” said Koskovich. “In 2015, West Valley vacancies ticked lower approximately 5.5 percent, while rents increased by 5 percent to 6 percent. At the same time, investment activity and prices have been on the rise, a trend we expect to continue through 2016.”
Built in 1979, Sonoma Terrace is a 260-unit Class B asset, consisting of 185,504 square feet in 19 buildings on 17.5 acres. The two-story community offers a unit mix of 40 studio, 152 one-bedroom and 68 two-bedroom apartments ranging from 460 square feet to 1,000 square feet. Occupancy at time of sale was 95 percent.
Common area amenities include two swimming pools and spas, two landlord-owned laundry facilities, clubhouse with billiards, outdoor barbeques, 260 covered parking spaces and 155 additional open parking spaces. Apartments include gourmet kitchens with all appliances, spacious interiors, ceiling fans, and private patios or balconies. Select units feature washers, dryers and walk-in closets.
Sonoma Terrace is located in a quiet neighborhood with the nine-hole Glen Lakes Golf Course and Manistee Ranch Park across the street. Nearby educational facilities include elementary, middle and high schools; Glendale Community College and Carrington College. There is an abundance of shopping in the area, and the active downtown district of Glendale is one mile to the south.
