Northmarq Phoenix’s Investment Sales team of Trevor Koskovich, Bill Hahn, Jesse Hudson, and Ryan Boyle brokered the $63.07 million sale of The Residences of Central Phoenix, a 265-unit, garden-style community located at 2020 W. Glendale Avenue in Phoenix, Arizona. The team represented the seller, Scottsdale-based Renue Properties. The buyer was InTrust Property Partners from Newport Beach, California.
“InTrust Property Partners realized the potential opportunities that exist with The Residences of Central Phoenix as the property transitions from a Low Income Housing Tax Credit Community (LIHTCC) to a market-rate property over the next three years,” explained Boyle. “The seller had completed the Qualified Contract process with the Arizona Department of Housing to remove the LIHTCC rental and income restrictions. Those restrictions will expire over a three-year period giving the new owners the opportunity to make renovations to the property and capitalize on market rental rates.”
Joe Giordani, senior vice president/managing director of Northmarq’s Newport Beach debt/equity team, financed the acquisition with a $50.8 million bridge loan.
Built in 1973, The Residences of Central Phoenix includes 27, two-story buildings with one-, two- and three-bedroom units that range in size from 650 to 1,150 sq. ft. The 242,825-sq. ft. community is located on 13 acres in the heart of the Alhambra neighborhood in the North Phoenix submarket. The property’s classic interiors are poised for full renovations, offering significant revenue growth opportunities with market rate rental increases.
Renue Properties recently invested $1.7 million into deferred maintenance and property enhancements at The Residences of Central Phoenix, including HVAC units, new roofs, windows, electrical panels, and exterior paint. They also remodeled the community clubhouse, adding to the property’s amenities that include a pool and hot tub, on-site laundry facilities, a basketball court and children’s playground. The complex was 98 percent leased at the time of sale.
Centrally located in North Phoenix, The Residences of Central Phoenix is within a few miles of two of the most significant infill revitalization projects in Phoenix: Grand Canyon University, which has invested more than $1.5 billion since 2009 in growing its campus, and the $750 million redevelopment of Metrocenter, which broke ground in 2022.