CBRE has arranged the sale of the 300-unit multifamily community Signature Place on behalf of Western Wealth Capital to Knightvest Capital for $62.5 million.
CBRE’s Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch of Phoenix Multifamily Institutional Properties represented the seller, Western Wealth Capital.
Located at 600 W. Grove Parkway in south Tempe, Signature Place community amenities include two resort-style swimming pools, a fitness center, lighted tennis courts, and outdoor grilling areas. All units at Signature Place have nine-foot ceilings, fully equipped kitchens, full-size washers and dryers, and private patios. Select units have walk-in closets, dual vanities, and fireplaces.
“Signature Place went to market before the pandemic onset and generated significant interest,” said Pesch. “Getting this deal across the finish line during the pandemic is a testament to the resiliency of both the buyer and seller. The underlying economic fundamentals in Phoenix are sound and the market is still a hot target for multifamily acquisitions.”
The Phoenix multifamily market posted a near-record low vacancy rate of 3.9 percent in Q1 2020 leading into the pandemic and the rate increased only 60 basis points to 4.5 percent at the end of the second quarter, according to CBRE Econometric Advisors.
“Signature Place is another great example of the successful execution of our disciplined value-add system. It was great to work with a team who was just as dedicated to seeing this sale through,” said Western Wealth Capital CEO Janet Lepage.
Phoenix had the strongest one-year total return for multifamily investments out of the 29 largest U.S. metros in second quarter 2020. The region’s 10.5 percent one-year return was comprised of 5.5 percent appreciation return and 5.0 percent income return, according to the National Council of Real Estate Investment Fiduciaries (NCREIF).
“Signature Place is a great addition to our Phoenix portfolio,” said Phil Lake, Knightvest Capital’s senior vice president of acquisitions. “The seller was cognizant of the unique transaction environment and together we were able to deliver an outcome that was mutually beneficial. Signature Place will give us the opportunity to once again demonstrate our strength as a vertically integrated value-add buyer and provide a high-quality community to our residents, while helping our partners achieve a tremendous result.”
Founded in 2007, Knightvest has become a major player in repositioning multifamily assets, transforming more than 100 properties, and consistently delivering exceptional returns for investors and a better quality of life for residents.
