Granite Reef Properties exits Phoenix market with Scottsdale Hacienda sale
ABI Multifamily, a multifamily brokerage and advisory services firm, announced the bulk condominium sale of Scottsdale Haciendas, a condo conversion community that is located in Scottsdale, Ariz. on Wednesday. The purchase consisted of 79 garden-style condominium and townhome units (out of an original 180 units total on the property) and transferred HOA control to the buyer. Scottsdale Haciendas sold for $9,250,000, which reflects a price just over $117,000 per unit. The sale is the second condominium transaction brokered by ABI Multifamily in the past week, with the two sales combining for nearly $16M in transaction volume.
The Canadian buyer, Reef Scottsdale LLLP, was attracted to the property’s class-A Scottsdale location and all two-bedroom unit mix. They will continue to operate the property as a rental community with the possible exit strategy of individual sales if the housing market continues to flourish. “Acquisition opportunities for Scottsdale apartments are few and far between. Much of the stock, like Scottsdale Haciendas, was converted to condominiums before the downturn. However, only about half of the units at Scottsdale Haciendas were sold to individual buyers as the conversion happened relatively late in the last cycle. The limited supply of Scottsdale rentals coupled with billions of dollars currently being invested in development projects in the surrounding hubs of Old Town Scottsdale and ASU’s Tempe campus, appealed strongly to the buyer,” according to Doug Lazovick, partner at ABI Multifamily.
The seller, Texas-based Granite Reef Properties LLC, exits the Phoenix Valley market with the sale of Scottsdale Haciendas.
“The South Scottsdale rental market had really taken off recently. The average rental rate has soared up over 13% since 2013. The property has consistently had occupancy in the mid to high 90% range. These factors, combined with an improvement in the South Scottsdale condo market and recent cap compression presented the ideal circumstances for the Seller to sell his only commercial real estate asset in Phoenix” stated Eddie Chang, Partner at ABI Multifamily.