PHOENIX, ARIZONA – Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of Arboretum at South Mountain, a 312-unit multifamily asset in the Ahwatukee Foothills Village of Phoenix, Arizona. The property sold for $118.25 million, which equates to $379,006 per unit.
“The asset has a market-leading location that combines proximity to some of Arizona’s most prolific employment corridors with the desirability of a suburban enclave where the average single-family home price exceeds $558,000, and average annual household income is $128,300,” said IPA executive managing director Cliff David.
“The Ahwatukee submarket is bolstered by ultra-high barriers to entry, highlighted by the construction of only two 100-plus unit apartment projects in the past 20 years.” David and IPA executive managing director Steve Gebing represented the seller, Khosro Khaloghli, and procured the buyer, Sares Regis Multifamily Value-Add Fund IV. Sares Regis acquired Arboretum at South Mountain as its first investment in the firm’s newly formed fourth Fund. New ownership plans to execute a renovation and repositioning of Arboretum at South Mountain with unit cosmetic enhancements and common area upgrades and expansion; budgeting just over $31,000 per unit.
“Arboretum at South Mountain gives the buyer a clearly defined value-add strategy achievable by renovating the apartment interiors to a high-end finish level to meet demand from one of the most discerning resident profiles in our local market,” added Gebing.
Located along Interstate 10, Arboretum provides immediate access to West Chandler Corridor’s over 29,000 employees and 640 businesses, including Intel, Verizon Wireless, Avnet, and Honeywell. Nearby Price Corridor is home to another 44,700 employees with Fortune 1000 companies including Northrop Grumman, General Motors, UnitedHealth Group, Microchip Technologies, and CVS Health. There is over 14.2 million square feet of retail and dining space within a five-mile radius, led by regional hotspots like Phoenix Premium Outlets and Chandler Fashion Center.
Completed in 1999 on 12.5 acres, the 15-building, controlled-access community has a resort-inspired swimming pool and freestanding fitness center with pool views. Apartments feature nine-foot ceilings, full-size washers and dryers, and private patios or balconies. The average unit size 863 is square feet.