Colliers International negotiated the sale of the 117-unit Avalon apartments, located at 3851 N. 28th Street in Phoenix, for $13.7 million. It’s new owner plans to carry out a high-end interior upgrade of the property, totaling over $20,000 in renovation costs per unit, which was already initiated by the seller.
Bill Hahn, Trevor Koskovich and Jesse Hudson of Colliers International in Phoenix represented the seller and procured the buyer. Pathfinder Partners Acquisitions, LLC, an entity formed by San Diego-based Pathfinder Partners was the buyer and Phoenix Avalon LLC, an entity formed by 3rd Ave Investments out of Phoenix, was the seller. Both of which are specialize in acquiring underperforming assets and adding value.
Pathfinder is a value investor applying an opportunistic and value-add approach to real estate investments, which it can transform through additional capital infusions, institutional level management and property re-positioning. Pathfinder has acquired defaulted loans, bank real estate-owned (“REO”) and value-add properties with estimated invested capital exceeding $725 million. 3rd Ave Investments targets poorly managed, undervalued and off-market investments, where opportunities exist to create value with an active management approach. To-date, it has acquired 1,873 apartments with an aggregate market value of more than $200 million.
“The buyer plans on completing the high-end interior upgrade program already initiated by the seller, totaling over $20,000 per unit in renovation costs,” says Hahn. “They hired highly acclaimed Alliance Residential to manage their property and drive up market rents in the gentrifying Arcadia Lite submarket.”
Avalon consists of seven-buildings with 96,750 square feet of space situated on 3.48 acres. The community is a blend of 69-percent, 1-bedroom units and 31-percent, 2-bedroom units. Newly renovated units include full-size washer and dryers, new paint, flooring, granite counter-tops, new kitchen cabinets, bathroom cabinets and new stainless steel appliances.
The community is located on the east side of 28th street just south of Indian School Road. The property is minutes away from popular up-scale restaurants, retail centers, and major employment corridors such as The Biltmore and Downtown Phoenix. Centrally-located in the Arcadia section of Phoenix, along the Camelback corridor provides residents easy access to the popular Arizona Biltmore Golf Course, Arcadia Neighborhood, Camelback Mountain hiking and a direct route to both uptown Phoenix and Old Town Scottsdale shopping and dining.