Company nearly doubled value of the asset, which was previously a community of individually owned condominiums, in roughly two years

Phoenix, Arizona – Next Wave Investors, LLC (“Next Wave”) a private equity firm focused on value-add multifamily investments, has sold Westover Parc Apartments, a 160-unit apartment community in Phoenix, Arizona, to an East Coast-based buyer for $41.625 million.

Next Wave, through a subsidiary company, initially purchased 103 of the units as condominiums in September 2019 and proceeded to strategically acquire the remaining units from more than a dozen different sellers over six months, for a total consideration of approximately $22 million. Through enacting a proven value-add program, the firm was able to nearly double the value of the asset in just over two years, according to Jordan Fisher, Principal at Next Wave.

“As early value-add multifamily investors in the high-growth Phoenix market, we’ve been well positioned to continue to identify and secure lucrative opportunities as competition has skyrocketed,” explains Fisher. “We leveraged our strong local connections, knowledge of market demands, and ability to think outside the box to recognize and fully realize this opportunity to strategically assemble a broken condo project and reposition the asset as an apartment community.”

As part of its value-add program, Next Wave completed interior renovations of almost all units; repainted the community; revamped the pool area, club house, and fitness center; and implemented a security system.

“We feel a unique advantage in that we have been acquiring, renovating, and selling multifamily properties in this market for several years,” says Fisher. “Based on our experience and local relationships, we were able to execute strategic renovations and exceed initial projections on the value of the property, even in the midst of the unprecedented pandemic. Westover Parc Apartments will provide the buyer with an upgraded, cash-flowing asset that will provide immense long-term value.”

David Sloan, Principal at Next Wave, adds that the Phoenix has remained resilient and continues to be one of the country’s fastest-growing markets: “Strong economic development and population growth are driving forces behind this continued demand. There are a number of large companies coming to Phoenix to expand their businesses, bringing an influx of employment opportunities to the area. As a result of this, we’ve seen an increased need for high-quality multifamily housing, which has allowed us to secure premium pricing as we bring our assets full cycle.”

Westover Parc Apartments offers residents fully equipped and modern one-, two-, and three-bedroom units. The property also has a variety of community amenities including a pool, picnic areas, barbeque grills, and the security of being a gated community. The property is situated near several diverse employers, award-winning schools, and numerous retail, dining, and entertainment options.

Westover Parc Apartments is located at 6515 W. McDowell Road in Phoenix, Arizona.

While builders continue to grapple with labor and material supply-side challenges, they are confronting what could be an even more urgent problem — an extreme lot shortage.

In a recent NAHB survey, 76% of builders reported that the overall supply of developed lots in their areas was low to very low. This is an all-time record — by a wide margin — since NAHB began collecting the information in the 1990s. The previous record was 65%, recorded in 2018.

Responding to questions in the September 2021 NAHB/Wells Fargo Housing Market Index (HMI) survey, 46% of single-family builders characterized the supply of lots simply as low, and 30% said the supply of lots was very low, for a total of 76% of builders indicating some type of problem with lot supply.

In addition to the overall supply, since 2013 the HMI survey has also asked builders to rate the supply of A, B and C lots in the areas where they build separately. As usual, shortages tended to be most acute among lots in the most desirable, or “A,” locations. Seventy-four percent of builders said that the supply of “A” lots was low or very low, compared to 67% for “B” lots and 57% for “C” lots.

All three percentages for the respective categories are at record highs, however, indicating that lot supply problems are historically widespread irrespective of the desirability of the locations.

NAHB senior economist Paul Emrath provides further analysis in this Eye on Housing blog post.

PHOENIX, ARIZ. – The Central Arizona chapter of CCIM, commercial real estate’s global standard for professional achievement, is accepting registration for its annual Par-Tee on the Green and 9-Hole Scramble, scheduled for Nov. 18 at Papago Golf Course.

The chapter is accepting registration through Nov. 15. Both events. The 9-Hole Scramble begins with check in at 8 a.m. and shotgun start at 8:30 a.m. Check in for Par-Tee on the Green is 11 a.m. Lunch follows at noon. The hole-in-one event begins at 2 p.m. and the raffle begins at 2:30 p.m.

Events include a putting contest, longest drive contest, hole-in-one contest with a $1,000 prize and a BBQ lunch. Registration fee for the Golf Scramble/Par-Tee is $275 per individual. Registration fee for a foursome (includes both events) is $1,000. The Par-Tee only event is $125 per individual.

Raffle items include travel and tote bags; a weekend in Williams, Arizona; a JBL party box; and a Surface Pro 8, to name a few.

Proceeds from the golf events benefit scholarships for Grand Canyon University students in the school’s real estate program.

Papago Golf Club is located at 595 E. Karsten Way in Phoenix.

Click here for more information and to register.