Passco Companies, LLC acquired a 218-unit multifamily community for $52.525 million in Scottsdale.
Passco named the community , Luxe Scottsdale, and it is located at 8444 E. Indian School Rd. The property was built in 2015, and it features a pool area with spa, two-story clubhouse with walk-out deck overlooking the pool, 24-hour fitness center featuring state-of-the-art touch screen equipment, cyber café bar area for events and cooking demonstrations, and a commercial grade dog washing station.
The community, built with an urban design, condominium finishes, and state-of-the art community amenities, was recently developed by the seller, Atlanta-based Wood Partners, said Gary Goodman, Senior Vice President, Acquisitions for Passco Companies.
The units themselves include ten-foot ceilings, fully appointed kitchens with granite countertops and tile backsplashes, stainless steel appliances, contemporary cabinetry and deep single-basin under-mount sinks. All homes have vinyl plank wood flooring, full-size washer/dryers and open patios or balconies.
“Luxe Scottsdale’s location in the coveted Downtown Scottsdale submarket provides a long-term competitive advantage, high barriers to entry for future multifamily product, and immediate access to Downtown Scottsdale’s upscale retail, vibrant restaurants, nightlife and an expanding hub of dynamic employment,” Goodman said. “This new community, which is still in its initial lease-up, has rents which are lower than its competition, making this an extremely smart acquisition for Passco Companies.”
Wood Partners developed the asset as its first of four developments in Arizona.
The firm also developed 3rd and Thomas, Alta Tempe, and Alta Steelyard Lofts.
“Combining style, luxury and convenience, the Luxe Scottsdale community, which was formerly called Alta Scottsdale, delivers gorgeous, modern units and amenities that clearly match the desires of our target market,” said Todd Taylor, Arizona and Nevada Development Director for Wood Partners.
Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch of CBRE’s Phoenix office represented Wood Partners in the transaction.
“Multifamily fundamentals remain strong as we close out the year, and we expect more of the same heading into 2016,” Cunningham said. “Numerous third-party forecasts have pegged Phoenix as a leader among major western markets in job growth and population growth through 2018. The community’s strategic location on Indian School Road, which serves as the gateway to Downtown Scottsdale, positions Luxe Scottsdale to benefit from demand drivers generated through significant employment announcements in that submarket.”
Downtown Scottsdale is experiencing unprecedented employment growth from dynamic healthcare, technology and financial services companies, Cunningham said.
Proximity to advanced education, abundant amenities and excellent demographics continue to attract top companies to Scottsdale.
Goodman notes Luxe Scottsdale’s close proximity to multiple employment centers are attractive components for continued renter demand for the property.
“The vibrant downtown continues to attract new eateries and shops that Millennials want to incorporate into their live/work/play environment,” Goodman said.
The property is an ICC 700 National Green Building Standard™ (NGBS) Bronze certified community. Luxe Scottsdale will be managed by Allison-Shelton.