Soleil Apartments, located near Dobson Road and Ray Road in Chandler, sold on Dec. 20 for $40,060,000. The 188-unit Soleil apartment community, built in 1995, comprises 47 percent one-bedroom units, 47 percent two-bedroom units, and 6 percent three-bedroom units.
NorthMarq’s Phoenix Investment Sales team of Trevor Koskovich, Jesse Hudson, and Bill Hahn, represented both buyer and seller in this transaction. The buyer was Phoenix-based 3rd Ave Investments, LLC. Soleil Chandler Apartments, LLC was the seller.
“This was an exceptional opportunity to buy a well-located asset in the booming city of Chandler,” said Zev Hendeles, principal of 3rd Ave Investments. Hendeles plans to upgrade the unit interiors, as well as the exterior common areas, to provide current and future residents with more modern amenities. “Our proven strategy will unlock the true value of Soleil,” he said.
“Soleil created a buzz in the Phoenix multifamily marketplace due to its location, unique broken-condo story, vintage, and value-add opportunity” said Koskovich. “Investors were in a frenzy to see the deal, with over 65 unique buyer tours and 30 offers. We created a competitive bidding environment that yielded the best results for our clients.”
Financing for the acquisition included a $33,250,000 NXT loan, which was arranged by James DuMars, managing director, and Griffin Martin, vice president of NorthMarq’s Phoenix debt/equity team.
“Given the asset’s formidable upside and the sponsor’s impressive track record there was a large contingent of lenders pursuing this opportunity. Consequently, the terms were incredibly competitive,” said DuMars. “Working alongside our investment sales team provided enhanced communication and an extremely smooth execution.”
The property is situated in the highly sought after Chandler submarket, which has experienced substantial job and population growth since 2015. The population nearly doubled (from 90,000 to 176,000) from 1990 to 2000, and then grew by another 35 percent from 2000 to 2010. Major employers include Intel, PayPal, NXP, Wells Fargo, Bank of America, Northrop Grumman and Microchip.
One of the drivers of this robust population growth has been the expansion of the freeway system in Phoenix over the past few decades. Chandler is served by the Interstate 10, which connects the city to Phoenix, Tucson and Los Angeles, as well as the Loop 101, which runs north to other East Valley cities such as Mesa and Scottsdale, and the Loop 202, which connects Chandler to Tempe, Phoenix and will ultimately be extended for easier access to the West Valley portion of Phoenix.