Jones Lang LaSalle’s Capital Markets announced the firm closed the sale of La Palma in Phoenix on behalf of LAP LLC of Orange County, California.
Purchased for $30.1M by Seattle-based Weidner Investment Services, the 548-unit apartment complex further cements the local market presence of Jones Lang LaSalle’s new multi-family investment sales practice, created when Executive Vice President John Cunningham joined the firm in fall of 2011.
Cunningham and Vice President Charles Steele led the Jones Lang LaSalle team on this transaction, with assistance from San Diego-based Executive Vice Presidents Darcy Miramontes and Diane Miramontes and Vice President Kip Malo.
“Phoenix has a resiliency that investors trust to grow value,” Cunningham said. “The new owners of La Palma have an excellent opportunity to improve and reposition the asset in a very strong Phoenix marketplace.”
According to Cunningham, Phoenix rental rates were up considerably at the end of the second quarter, reaching an average $774 per month compared to an average $754 in the first quarter of the year. Vacancy has simultaneously decreased, falling from 9.8% in 1Q 2011 to 8.6% by mid-2012.
“That attracts investor dollars, and has ranked Phoenix third in the nation for total transaction volume,” said Cunningham, noting that by August, total transaction velocity in Phoenix already had surpassed its 2011 total volume of $1.49 billion.
The 548-unit La Palma, located on West Bell Road near 7th Avenue, is approximately 90% occupied. It includes 2- and 3-story buildings with 1-, 2- and 3-bedroom units ranging from approximately 720 to 1,444 SF.
The 1984-built property sits on 27.6 acres on a major metro arterial. Amenities include two large clubhouses, four swimming pools and multiple sports courts.
A 25-year industry veteran, Cunningham joined Jones Lang LaSalle last year in response to a surge in multifamily transactions and client demand not seen in greater Phoenix for years. He is charged with establishing and expanding the firm’s multifamily investment sales practice in Phoenix and throughout the region. Steele joined the practice in April.
Jones Lang LaSalle is a leader in the Phoenix commercial real estate market. Employing 344 industry experts, the firm offers office and industrial brokerage, tenant representation, facility and investment management, capital markets and development services. In 2010, the Phoenix team completed 3.2 million square feet in lease transactions, directed $60 million in project management and currently has 13.5 million square feet under management.
Jones Lang LaSalle Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2011 alone, Jones Lang LaSalle Capital Markets completed $60 billion in investment sale and debt and equity transactions globally. The firm’s dealmakers completed $52 billion in global investment sales and buy-side transactions, equating to nearly $216 million of investment trades completed every working day around the globe. In the United States, Jones Lang LaSalle grew its total Capital Markets volumes by 122 percent in 2011 and is quickly gaining market share across all property types. The firm’s Capital Markets team comprises more than 1,200 specialists, operating all over the globe.