California investor buys The Wexler for $26.5M
CBRE has brokered the sale of The Wexler, a 219-unit multifamily community in central Phoenix for $26.5 million.
Brian Smuckler, Jeff Seaman and Bryson Fricke represented the seller, 3030 N. 7th Street, LP, an affiliate of Austin-based Pennybacker Capital, and the buyer, Wexler Partners, LLC, a California-based joint venture between WIP-Park Village II, LLC and WIP-Fireside II, LLC, who acquired the property in a 1031 exchange. The sale marks the buyer’s second multifamily property acquisition in metro Phoenix. The financing was secured by Rocco Mandala with CBRE Capital Markets, Debt & Structured Finance.
Located in the metro’s Central Phoenix Submarket at 3030 N. 7th Street in Phoenix, The Wexler features renovated studios, one-, two- and three-bedroom units and offers residents various amenities, including a clubhouse, resort-style swimming pool, fitness center and barbecue area. The community benefits from its proximity to several central employment corridors, including Downtown Phoenix, Midtown and Biltmore, as well as numerous retail centers, professional sports venues and entertainment attractions. The Wexler is well-located for access to the area’s transit networks, including the Phoenix METRO Light Rail.
“The buyer had a 1031 exchange to complete and was pursuing assets in strong infill locations in which they could maximize value through improving operational inefficiencies,” said CBRE’s Seaman. “At the same time, we were working with the seller on a separate transaction and identified one of their properties, The Wexler, as a perfect fit for the buyer’s requirements. The sale marks a successful conclusion to an off-market transaction and is a result of strong collaboration between all parties involved.”
The U.S. multifamily market remains healthy, as 2018 net absorption reached the highest level since 2000, according to a recent CBRE report from CBRE Research. Among the largest markets (300,000+ units), Phoenix ranked second in biggest year-over-year declines in vacancy – down 80 bps to 4.6 percent and ranked second in highest year-over-year rent growth at 7.6 percent. The average rent in the Central Phoenix submarket has increased by more than 12 percent over the last year.