Capital Markets experts in the Phoenix office of JLL have completed the $16.2 million ($180,000 per unit) sale of Cobalt on 32nd Street, a case study for Phoenix’s stalled-to-stable multifamily recovery and a sign of continued investor appetite for the market’s upside potential.
JLL’s Executive Vice President John Cunningham and Vice President Charles Steele represented the property seller, Seattle-based Goodman Real Estate. The buyer is Weidner Investment Services.
Cobalt is located at 18350 N. 32nd Street, at 32nd Street and Union Hills in Phoenix. The property last traded hands in 2013, when Goodman purchased the asset with the goal of transforming it from a “stalled” and distressed state into viable inventory for the Phoenix multifamily pool.
At the time of Goodman’s purchase, Cobalt included 24 completed units operating at more than 90 percent occupancy, along with land for a 66-unit expansion. After purchasing the site, Goodman managed the additional construction and in 20104 delivered a Class A, gated community comprised of 90 townhomes averaging 1,183 square feet.
“The recession brought much of the area’s new multifamily construction to a grinding halt,” said Cunningham. “Cobalt on 32nd Street afforded investors the opportunity to acquire a stabilized, best-in-class asset and use the momentum of the market to fully capitalize on the property’s inherent value.”
The new Cobalt project includes 90 uniquely designed townhome units, each featuring a private, oversized ground floor entry and a direct-access garage, as well as shared spaces that include a resort-style pool, clubhouse and fully equipped fitness center. It is situated in the Northeast Phoenix/North Scottsdale area, near Desert Ridge Marketplace and Paradise Valley Mall, and multiple employment centers such as Scottsdale Airpark, the Arizona Biomedical Corridor and the Deer Valley office submarket.
It sits less than one mile from State Route 51 Piestewa Freeway and less than 1.5 miles from the Loop 101.
“The low density of 14 units per acre, due to its 100 percent two-story townhome construction, gives Cobalt residents a single-family home appeal in a professionally managed, luxury rental community,” said Steele. “The buyer recognized the attraction of these features and the opportunity to buy in a submarket in which they had previously not been able to, all while adding a very high-end asset to their existing Phoenix portfolio.”
Unit features at Cobalt include upgraded kitchens with granite counters and Whirlpool stainless steel appliances, outlets with USB ports, wood flooring, large laundry rooms and upgraded carpeting in oversized floorplans.