Newmark Knight Frank (NKF) Multifamily announced the sale of three separate Phoenix-area assets: The Colony, Las Casitas and Arroyo Villas. Together, the three properties sold for a total of $68.975 million. NKF Senior Managing Director Brett Polachek, Executive Managing Director Brad Goff and Director Chris Canter represented three separate sellers in the transactions.
Built in 1979, The Colony Apartments is a 236-unit garden-style asset comprised of 41 one- and two-story buildings located at 4337 North 53rd Lane in Phoenix. Purchased by Vancouver-based Western Wealth Capital, the value-add property sold for $25.1 million, or $106,355 per unit, by San Diego-based CALCAP Advisors.
“With attractive features and large units in original condition located in a relatively low density setting, The Colony offered potential investors a blank canvas with which to implement a value-add strategy,” said Polachek. “Interest from potential buyers was high and competitive, allowing CALCAP Advisors to be selective. This acquisition expands Western Wealth Capital’s presence in the area and presents an opportunity to increase rental rates through a strategic capital improvement plan.”
Las Casitas Apartments is a 1974-built, 168-unit, amenity-rich apartment community with 42 one- and two-story buildings located at 1408 North Central Avenue in the suburban-Phoenix neighborhood of Avondale. Interurban Las Casitas, LLC sold the property to a privately held real estate investment firm, 29th Street Capital, for $21.37 million or $127,202 per unit.
“Although Las Casitas’ units have recently been updated, 29th Street Capital plans to enhance the seller’s interior and exterior renovations while taking advantage of the property’s unique configuration and positive developments in the Avondale area, ultimately planning to increase rents,” stated Goff. “29th Street Capital continues to be active in the Phoenix area and Las Casitas fits well within their business plan of purchasing multifamily where they find value for their investors.”
A vintage property constructed in 1984 and owned by individual investor Christian Covaciu, Arroyo Villas is a 196-unit apartment complex located at 4748 West Sierra Vista Drive in Glendale. Arroyo Villas sold for $22.5 million or $114,796 per unit to Western Wealth Capital and NKF Debt & Structured Finance Executive Managing Directors Kevin Mignogna and Charlie Haggard and Managing Director Michael Poe secured financing for the transaction.
“With an ideal mix of two-bedroom/two-bath and one-bedroom units still in original condition and an optimal location proximate to Grand Canyon University, major employment centers and nearby notable retail, Arroyo Villas represents a great opportunity for Western Wealth Capital to boost net operating income by modernizing the property’s interior spaces,” commented Canter. The property offers a community amenity package that includes two pools and spas, a soccer field, basketball court, business center and a covered children’s playground. All units also include a washer and dryer.
“As demonstrated by the aforementioned transactions, the entire Phoenix metro area has experienced tremendous rent growth recently and continues to generate high investor interest,” concluded Polachek.