ABI Multifamily announced on Friday the sale of a premier North Paradise Valley, 128-unit, multifamily property – Waterford on Tatum Apartments – for $14,175,000 or $110,742 per unit.
This completes an exciting past week at ABI, with three significant closings (Southern Ridge Apartments and Scottsdale Haciendas Condominiums & Townhomes being the other two). Total transaction volume for the three closings was $29,935,000, with 320 total units and a price per unit of approximately $93,550.
The selling entity purchased Waterford on Tatum Apartments, formally known as Tatum Gardens Apartments, in 2012 from AIMCO and completely repositioned the property through capital renovations. Waterford on Tatum Apartments was originally built in 1985 and was renovated by the seller in 2013. The bulk of the renovation dollars were spent on the common areas. A small percentage of the interiors were also renovated to prove out rental increases, so plausible buyer assumptions could be made for renovating the balance of the interiors. ABI Multifamily is pleased to have been part of this sale, as it appears to be one of the first Phoenix multifamily properties, post the downturn, to transact with a favorable in-place agency loan,” stated Rue Bax, Senior Managing Partner at ABI and one of the lead brokers for this transaction.
ABI Multifamily played an integral part in bringing the deal to fruition in connecting the buyer and seller. The property is ideally located in the North Paradise Valley Multifamily Submarket, with easy access to Scottsdale and just a couple minutes drive to the well renowned Scottsdale Quarter, Paradise Valley regional mall and Kierland shopping area, as well as, being only four miles away from the Desert Ridge Marketplace.
We (ABI) were really impressed with the quality of construction and renovations at Waterford on Tatum Apartments and the Buyer recognized all the hard work that the selling entity completed to get this property into immaculate condition. The Buyer plans to complete further renovations to the balance of the non-renovated interiors. Waterford on Tatum Apartments was a unique opportunity to purchase a low density, majority two bedroom / two bathroom apartment community, with over 1,000 SF unit averages and washer/dryer in each apartment home. The additional icing on the cake was that it also had a great low interest rate agency loan that the buyer assumed,” says Alon Shnitzer, Senior Managing Partners at ABI and one of the lead brokers for this transaction.
Waterford on Tatum Apartment community is located at 15425 North Tatum Boulevard in Phoenix, Arizona. The property is in the heart of one of the most desirable areas in the entire valley with great access to the I-51 and Loop-101 freeways. Some of the major employers in the immediate area include GoDaddy, JDA Software Group, Veri Fone, Inc., Discount Tire, First National Financial Services, Choice Hotels, Skill Soft and St. Jude Medical Center. The location provides for easy access to major job centers via the surrounding freeways, while also allowing for quick access to many options in all directions for shopping, entertainment, and fine dining.
Waterford on Tatum Apartments was originally constructed 1985 out of wood frame and stucco. The property sits on nearly 6 acres of land, with 8 total buildings and a dedicated leasing center that was recently remodeled. All common areas were completely renovated in 2013 and a portion of the interiors were as well. Waterford is a solid and highly sought after “B” class community, with majority two bedroom / two bathroom floor plans. The property is one of the most well located communities in the Phoenix market.
The buyer, a private partnership based in Calabasas, Calif., is an experienced multifamily investor with hundreds of units in the Phoenix market.
The seller, Stoneleigh Companies, based in Barrington, Ill., with a local office in Scottsdale, is an experienced multifamily developer and institutional caliber investor. Stoneleigh currently operates approximately 4,000 units nationwide and is under construction on six other new multifamily communities in the US.
The Phoenix-based ABI Multifamily brokerage team of Alon Shnitzer, Rue Bax, John Kobierowski, Doug Lazovick and Eddie Chang represented both buyer and seller in the transaction.