Photography by Kirk Krein
NexMetro sells Gilbert asset for $42.6M
NexMetro Communities, a pioneer of single-level luxury leased home neighborhoods, has sold its 152-unit Avilla Town Square asset for $42.6M to Keller Investment Properties.
“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. “Avilla Town Square is in an ideal location and has been an exceptionally performing single family rental neighborhood commanding rents above the submarket average.”
The Avilla Town Square transaction closed on December 27, 2019, at a $280,263/per door price. The 152-home neighborhood on 13.9 net acres in the Phoenix MSA of Gilbert, is located at 150 E. Warner Road. The Avilla project commanded rents well above the submarket average and stabilized in less than six months of delivery. The transaction marks the sixth Avilla Homes community sold by NexMetro (five in Phoenix MSA and one in Dallas MSA). The company sold its 225-unit Avilla Victoria project in Queen Creek in November and 122-unit project in Plano, Texas earlier in December.
The transaction marks the first acquisition for Keller Investment Properties (KIP) in the Gilbert market and the first single family rental property in the portfolio. “KIP is expanding its presence in the Phoenix MSA and we are excited to add such a quality-built and unique property. We also feel optimistic that this opportunity to enter into the solid Gilbert housing market and look forward to many more opportunities here,” said Scott C. Keller, owner of Keller Investment Properties. The property will be re-branded as “Keller Town Square”.
Berkadia Real Estate Advisors was the exclusive listing firm for this sale. “Investor interest in Avilla Town Square was intense from a wide variety of qualified prospective buyers” said Mark Forrester, senior managing director for Berkadia.
NexMetro’s Avilla gated neighborhoods feature single level, detached homes with private backyards, 10-foot ceilings and high-end finishes. Avilla Town Square includes a resort-style swimming pool, hot tub, outdoor fireplace, covered ramada, covered parking and garages and an electric vehicle charging station.
Under its Avilla Homes moniker, NexMetro currently has 31 properties comprising more than 4,500 new rental homes completed, under construction or in pre-development in the Phoenix, Dallas, Denver and Tampa metro areas representing more than $1 billion in capital investment. The company has another six properties representing 1,300 homes currently in under contract and looks to continue to grow its pipeline of future Avilla neighborhoods.