Alta Drinkwater sells for $96.15 million
CBRE has arranged the sale of the 277-unit multifamily community Alta Drinkwater on behalf of Wood Partners to Starwood Real Estate Income Trust, Inc. (“SREIT”), a nontraded REIT managed by Starwood Capital Group, for $96.15 million.
Built in 2019 in Downtown Scottsdale, Alta Drinkwater features a resort-style swimming pool with poolside kitchen and dining area, a large roof-top lounge, state-of-the-art fitness center, designer resident clubhouse with a 13-foot television, outdoor courtyard with gas grills and games and secured garage parking. Individual residences at Alta Drinkwater have condominium-quality finishes with nine, ten, and 20-foot ceilings and gourmet kitchens featuring oversized quartz countertops, natural gas cooktops and energy-efficient stainless-steel appliances.
“Alta Drinkwater’s market-leading amenities, Class A finishes and iconic visibility on Scottsdale Road created a unique core offering that attracted significant interest from some of the top buyers in the country,” said Gunter. “Downtown Scottsdale is one of the top performing Class A submarkets in the Western United States.”
According to CBRE Research, year-over-year multifamily rent growth in Phoenix increased 8.2 percent in Q3 2019, the strongest growth of all metros in the United States, while rent growth in Downtown Scottsdale increased 7.6 percent during the same time.
“Alta Drinkwater is a tremendous fit for SREIT and follows our thesis of investing in targeted growth markets. This is a best-in-class physical asset, in a highly-desirable location, with close proximity to major employment centers and numerous amenities,” said David Baker, Senior Vice President of Acquisitions at Starwood Capital Group. “We believe this is a good risk-adjusted acquisition in a Downtown Scottsdale submarket that has some of the best supply-demand fundamentals in the United States.”