CBRE has completed the sale of most of the units in the historic El Cortez condominium complex in midtown Phoenix. The sale included 146 of the 165 units in the complex for a sale price of $6.4 million.
Brian Smuckler and Jeff Seaman with CBRE’s Phoenix office represented the seller, El Cortez Condominiums, LLC of Gilbert, Arizona. Bert Kempfert, also with CBRE Phoenix, represented the buyer, San Francisco, California-based FPA Multifamily, LLC.
“Midtown Phoenix continues to see significant cultural and economic growth. We’re witnessing a renaissance of the area. People want to live and work in central Phoenix. As a result, investors recognize the submarket’s pent-up rental demand and are seeking value-add opportunities,” said CBRE’s Smuckler.
“Market fundamentals have improved to pre-recession levels, particularly in central Phoenix submarkets like midtown. This is the result of economic and employment growth fueled by the healthcare and technology sectors. We’re seeing everything from the development of high-end condominiums and class-A apartments to great mixed-use, community-centered retail, and it’s drawing people to these urban areas.”
Built in 1964 as a resort hotel by Art Linkletter, the famous television personality, the midcentury modern community was later converted into condominiums. Situated on 2.36 acres, the property is comprised of mostly studio floor plans that average 401 square-feet and feature private patios or balconies and floor to ceiling windows.
The buyer has plans to reposition and rebrand the property. Post-renovation, the project will be one of the fist communities offering a micro housing concept in the Valley, a trend that has already taken off in metros like New York City, San Francisco and Seattle, among others.
The El Cortez community offers residents a shared courtyard with swimming pool, three on-site laundry facilities and electronic access gates. The property is located just south of Osborn Road on 7th Avenue within the Melrose District of midtown Phoenix. The property is across from Saint Joseph’s Hospital and Medical Center and within walking distance of the Central Corridor, which is home to notable employers like Banner Health Medical, Deloitte and Wells Fargo Bank.
