NexMetro Communities, a pioneer of single-level luxury leased home neighborhoods, has sold its 225-unit Avilla Victoria asset to an affiliate of Chicagoland-based The Inland Real Estate Group of Companies, Inc. Mark Cosenza, senior vice president of Inland Real Estate Acquisitions, LLC, facilitated the purchase on behalf of the Inland affiliate. NexMetro sold the Phoenix multifamily asset for $55.5 million, according to Yardi Matrix. The buyer closed on a 10-year, $30.4 million acquisition loan from Santander Bank.
“This NexMetro sale further validates the tremendous value in the market for the higher-quality leased-living experience that makes Avilla such a unique alternative to the typical apartment,” said Josh Hartmann, CEO of Arizona-based NexMetro Communities, adding that the company evaluates the hold or sell strategy for each of its assets individually. “We are proud to continue our relationship with Inland, as they continue to find value in the premium obtained in the market for the hallmark Avilla brand and product offering.”
The Avilla Victoria transaction closed on November 5. The 225-home Class A neighborhood on 18.6 net acres in the Phoenix MSA of Queen Creek, is located at 20450 E. Ocotillo Road. Inland, which also purchased NexMetro’s 194-home Avilla Grace project in June 2018 in Chandler, AZ, will continue to operate both projects under the Avilla Homes brand moniker. Both Avilla projects command rents well above the submarket average and stabilized within one year of delivery.
“Strong demographics and an ideal location made Avilla Victoria an attractive acquisition opportunity,” said Cosenza. “Its close proximity to Rittenhouse Road provides residents with quick access to Arizona State University Polytechnic Campus, the Phoenix-Mesa Gateway Airport and the San Tan Village Marketplace. An additional grocery-anchored center and variety of nearby retail and medical center options make this a desirable community for renters.”
NexMetro’s Avilla gated neighborhoods feature single level, detached homes with private backyards, 10-foot ceilings and high-end finishes. Avilla Victoria includes two resort-style swimming pools, hot tub, outdoor fireplace, putting green, bocce ball, outdoor barbeques, green spaces and electric vehicle charging station.
Under its Avilla Homes moniker, NexMetro currently has 30 properties comprising more than 4,300 new rental homes completed, under construction or under contract in the Phoenix, Dallas and Denver and Tampa metro areas. The company has another eight properties representing 1,700 homes currently in pre-development and has a total of more than $1 billion in capital investment.
“NexMetro has seen tremendous success in identifying an unfulfilled niche in housing with our hybrid leased new-home option for consumers who are mostly renters by choice,” said Richard Van Wert, Chief Investment Officer for NexMetro. “Avilla neighborhoods offer a truly unique alternative to the typical rental experience, and residents and investors alike understand the power of its tremendous appeal.”
