The P.B. Bell Companies closed on the purchase of 2,759 apartment units in seven complexes throughout metropolitan Phoenix on Tuesday. The $168.5 million transaction represents the largest in company history and one of the largest sales in the Phoenix multi-family housing market since the economic downturn reset the real estate industry in 2008.

The properties were owned by Standard Fund of Arcadia, California, and include:

·         Alante at the Islands, Crosswinds and Laguna Village, all in Chandler;
·         Tuscany Palms and Whispering Meadows, both in Mesa;
·         Sienna Springs in Central Phoenix; and
·         Tela Verde in Glendale.

R. Chapin Bell, president of The P.B. Bell Companies, said cosmetic upgrades will be made to the properties in the coming months to capitalize on their existing merits and enhance their marketability. Beyond the value-add potential, he said, the acquisition reflects improving fundamentals in the local multifamily housing sector as buyers, sellers and developers respond to ongoing economic recovery. “This is a significant win for our company, and is indicative of the potential we presently see in the metro Phoenix marketplace,” he said. “With apartment vacancy rates hovering at around 5 percent, the rental housing market continues to have a long runway.”

Chief Financial Officer Jeff Thompson noted the importance of the diverse and robust acquisition team that worked extremely well in executing a transaction of this magnitude, and praised each member for his or her contribution. “From our equity partner, mortgage brokers and lender, to our internal and external due diligence and real estate operations people, each professional on the team played a key role in carrying this deal across the finish line,” Thompson said.

Cindy and Brad Cooke of Colliers International in Phoenix brokered the transaction. Equity was provided by Stonecutter Capital Management of New York.  Mortgage broker Seth Grossman, head of Meridian Capital Group’s San Diego, California office; Ryan Gandel, also of Meridian Capital Group; and Prime Finance Partners were also involved in the transaction.

Philip Lake, director of acquisitions, said The P.B. Bell Companies intends to use the transaction as a springboard to acquire more product. “We’ve set an aggressive acquisition strategy for 2014 and beyond, and these seven properties are representative of the velocity of our growth projections,” he said. “We will continue to search out projects that will help us meet our goals.”