Another large, multifamily deal was made recently, as the 300-unit Class A multifamily community Riata was sold by Embrey Development to EPI Property Management for $91 million, or $303,333 per unit.
CBRE’s Tyler Anderson, Sean Cunningham, Asher Gunter, Matt Pesch, and Mark McFate of Phoenix Multifamily Institutional Properties represented the seller, San Antonio, Texas-based real estate developer Embrey Partners. Martin Cohan of Marcus & Millichap and Cliff David and Steve Gebing of IPA represented the buyer and managed the execution of the sale to EPI, which is a private family trust in a 1031 exchange.
Built in 2020, Riata features resort-inspired amenities, including a two-story clubhouse with billiards table, arcade games and a dedicated business center. The fully equipped club-style gym includes a separate yoga and fitness studio with spin bikes. Riata’s pool and spa area features a fire pit plus covered seating and open sun decks.
“Riata represents the best of Embrey’s ongoing dedication to design, detail, craftsmanship and creating places where people want to be,” said Embrey Chief Investment Officer Garrett Karam. “We matched Chandler’s desire for high-end Class A multifamily with market need, and resident demand followed. We are excited for EPI in this acquisition and believe Riata will provide stable growth over the long term.”
“The acquisition of Riata was the culmination of an exhaustive search for a best-in-class multifamily asset to purchase following the sale of the buyer’s long-held Northwest Valley apartment property,” said Cohan, Marcus & Millichap senior vice president investments and advisor to the buyer. “Procuring this investment opportunity for my long-term client required the skillful precision and market expertise of the David-Gebing team,” added Cohan. “It was a pleasure to collaborate with them; a true highlight in my ongoing 34-year career as a commercial real estate investment advisor.”
The multifamily vacancy rate in Chandler decreased 30 basis points year-over-year to 3.3 percent in third quarter 2020, the lowest rate on record going back to 1995, according to CBRE Econometric Advisors.
“Embrey Partners is a premier developer and they delivered a best-in-class community,” said CBRE’s Gunter. “Phoenix is a top-performing market nationally. Riata presented an excellent opportunity to acquire one of the best luxury multifamily communities in the Southeast Valley.”
Riata is adjacent to Chandler Fashion Center, a 1.3 million square feet super regional mall, and the community is situated at the gateway to the Price Road Corridor in Chandler, the hub of Phoenix’s high-tech manufacturing and financial services employment.
“Riata is a well-conceived, well-located trophy apartment community developed by San Antonio, Texas-based Embrey Partners,” said David. “The rapidity of the lease-up, despite the impositions caused by the effects of the coronavirus pandemic, demonstrates the attraction Riata has for people desiring apartment homes with high-end amenities adjacent to Chandler’s premiere retail concentration and proximate to the robust Price Corridor, the foremost destination for high-salaried professionals in the state of Arizona.”