ABI Multifamily Completes $29.15 Million Sales in Two Apartment Transactions
ABI Multifamily, a dedicated multifamily brokerage and advisory services firm, closed on two apartment communities recently with an aggregate of $29.15 million for the 304 total units. Palm Valley Apartments with 264-units in Goodyear, AZ and Palm Vista, a 40-unit community in Midtown Phoenix.
Palm Valley Apartments sold for $27.2 million ($103,030 per unit) for the 264-unit community. Palm Valley, originally built circa 1997-1998, features spacious 1, 2 and 3-bedroom units with a weighted average size of approximately 893-square-feet with full size washer/dryer in each unit and fireplaces in select units.
“This is an amazing deal, for both buyer and seller,” states Rue Bax, Senior Managing Partner at ABI. “The Phoenix Metro has seen tremendous investment activity in and around urban core districts which has resulted in tremendous increases in price and price/unit sales. The Buyer, a private equity fund based in California, wanted to find a stable, high quality asset to purchase and reposition, and in an area outside of urban core districts where they could maximize value. Palm Valley, above all else, offers a premiere location that is unable to be replicated in the submarket and offers the new owners tremendous upside without significant risk.”
The Palm Valley Apartments are located in Goodyear’s premiere 9,500-acre Palm Valley Master Planned Community and just minutes from all major West Valley transportation corridors of I-10, Loop 101 and the newly opened Loop 303. The property is also just a short walk to the acclaimed Palm Valley Golf Club which boasts a 36-hole championship course with an Arthur Hills-designed par-72 course that covers 7,015 yards.
Palm Valley Apartments sit on just over 16-acres of land, with 19 total buildings and a dedicated leasing center/clubhouse. Palm Valley is a solid and highly sought after “B+” class community, with over 60% of its unit mix comprised of 2 and 3-bedroom units, and situated in an “A+” location. Palm Valley’s high-end community amenities include: resort style (heated) pool & spa, fitness center, outdoor BBQ grill and picnic areas, fully appointed clubhouse with business center, full covered parking, and lush resort style landscaping.
Interior unit amenities include: fireplaces in select units, full size washer/dryer, 9-10 foot ceilings, vaulted ceilings, large private patio or balcony with storage, and walk-in closets.
The buyer in this transaction is an experienced multifamily investor based in California.
The seller is Indianapolis, Indiana-based, Pedcor, a privately owned multifamily development, construction and management company. Founded by Gerald Pedigo and Bruce Cordingley in 1987, Pedcor has developed over 10,000 apartment units across the United States.
The second transaction, the sale of the Palm Vista Apartments a 40-unit, apartment community sold for $1.950 million ($48,750 per unit). Originally built in 1982, Palm Vista Apartments is comprised of two contiguous buildings that are constructed of block and wood with pitched roofing. Over the last several years, the property underwent extensive interior and exterior renovations.
“The Seller purchased the property in 2010 as a lender owned asset from a major national bank. At that time, the 16th Street Corridor, particularly between Indian School Rd and Camelback Rd, had suffered a major setback during the 2008-11 recession. Since the sellers’ ownership began, a major infusion of capital expenditures was made to completely reposition the property. They even did all new cabinets, countertops and appliance packages in each unit. It’s really nice and they did a really good job in turning around the property,” states Alon Shnitzer, Senior Managing Partner at ABI.
According to John Kobierowski, Senior Managing Partner at ABI, from the buyer’s perspective, “ever since the market turned around, the entire corridor has exploded with apartment construction growth; currently, 435 units are under construction (@51 and Escape Modern Living) and another +/500 planned. The construction boom has displaced many residents in the area, which provides tremendous rental upside for the Buyer to provide more affordable rental housing alternatives to those residents while maintaining its historic high occupancy.”
The property is ideally located in Midtown Phoenix’s 16th Street Corridor. With easy access to jobs, higher education schools, quality healthcare and shopping, the property is uniquely positioned for continued high demand.
The completely renovated apartment community features an attractive unit mix consisting of one- and two-bedroom unit types (80% Two Bedrooms), value-add opportunity through further renovations and/or redevelopment capability with an attractive R-4 zoning, and close to heavily trafficked transportation/employment corridors.
The buyer is an experienced private investor from Hawaii and the seller is an experienced private investor from Canada, with other multifamily holdings in the Phoenix MSA.
The Phoenix based ABI Multifamily brokerage team of Rue Bax, Alon Shnitzer, John Kobierowski, Doug Lazovick and Eddie Chang negotiated the transaction.
ABI Multifamily, with offices in Phoenix and Tucson focuses exclusively on apartment investment transactions. The experienced advisors at ABI Multifamily have completed billions of dollars in sales and thousands of individual multifamily transactions. ABI Multifamily incorporates a global approach with regional real estate expertise to successfully complete any multifamily transaction, regardless of size and complexity.
To learn more the ABI brokerage team can be reached at www.ABImultifamily.com or at 602.714.1400.