FPA Multifamily Sells Phoenix Apartments
Cushman & Wakefield represented the seller in the deal.
Nippon Steel Kowa Real Estate and Continental Realty Assets, a subsidiary of Continental Realty Group, formed a joint venture to buy Arrive Fountain Hills from FPA Multifamily. The nine-building apartment property is in the Fountain Hills submarket of Phoenix. The partners are actively looking for additional multifamily investment opportunities in the city.
The 150-unit Arrive Fountain Hills, located at 13225 North Fountain Hills Blvd., offers two-bedroom apartments averaging 1,041 square feet. The property was constructed in 1998 on 9.7 acres of land. Apartment amenities include semi-private entry, above-standard ceiling height, washer/dryer, microwave, private balcony/patio in select apartments. Resident amenities include monitored security, a fitness center, a business center, a swimming pool, a sundeck and a spa.
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The partners will rename the property as Luna at Fountain Hills in recognition of the city’s designation as an International Dark Sky Community in 2018. According to the International Dark Sky Association, Fountain Hills is one of only 16 communities in the world that actively work to protect their nighttime environment and dark night skies.
Nippon Steel Kowa and Continental Realty intend to launch a capital improvement program at Luna at Fountain Hills that will update apartment interiors with solid-surface countertops, new cabinet faces and hardware, appliances, kitchen backsplash, two-tone paint, updated blinds, updated fixtures and faux wood flooring.
The partners noted this will allow them to provide residents with quality housing at an affordable price relative to nearby submarkets such as Scottsdale.
Mark Taylor Residential will manage Luna at Fountain Hills. Cushman & Wakefield represented FPA Multifamily in the sale of the property. Metzler Real Estate advised Nippon Steel Kowa.
Phoenix Multifamily Market
There are 201 multifamily properties with a total of 35,006 units within 5 miles of the intersection of Washington Street and North Central Avenue in downtown Phoenix, according to Yardi Matrix. Developers have 31 projects with 7,368 units under construction and have planned 16 more with 3,681 units. They have another 26 properties in the pipeline that could add 4,064 units to the market.
Phoenix has seen 157 multifamily assets with a total of 25,582 units change hands in the past five years, posting an average sale price of $175,555 per unit.