Less than three years after acquiring the nearly 28-acre multifamily community for $63.5 million, Harbor Group International has sold Avia McCormick Ranch, a 329-unit, garden-style property in Scottsdale, Ariz., for $96.3 million.
The buyer was not disclosed. CBRE handled the transaction.
HGI invested $4.4 million in renovations to update unit interiors, landscaping and overall curb appeal of the property located in the prestigious McCormick Ranch community in central Scottsdale.
Richard Litton, HGI president, said in a prepared statement the private real estate investment and management firm was able to rapidly achieve its business plan as the greater Phoenix area. He said the market benefitted from a surge of employment opportunities from financial services and technology companies moving into the city driving demand for well-located, high-quality housing. He said Avia McCormick Ranch is an excellent example of HGI’s value-add strategy in markets with strong multifamily fundamentals and high barriers to entry.
Located at 8375 E. Via de Ventura Blvd., the property was built between 1978 and 1980. HGI acquired the asset in December 2018 for $63.5 million from LivCor, according to Yardi Matrix data. LivCor had owned the property since December 2015, when it purchased the asset from Greystar for nearly $43 million. On Dec. 20, 2018, the property became subject to a CMBS loan in the amount of $44.7 million originated by Berkadia Commercial Mortgage that was set to mature on Jan. 1, 2026, according to Yardi Matrix.
Avia McCormick Ranch is close to numerous recreational offerings, including two championship golf courses, more than 25 miles of bicycle paths, numerous parks and seven of Phoenix’s major employment centers. Property amenities include four swimming pools with cabanas and spas, a tennis court, volleyball court, basketball court, outdoor lounging areas, clubhouse with fitness center and business center. Units have washers and dryers but there are also four laundry facilities on site.
The property has 22 two-story buildings. Unit sizes range from studios and one-bedrooms to three-bedrooms with an average of 855 square feet.
In September, a joint venture between affiliates of HGI and Cammeby’s International Group acquired a 41-property multifamily portfolio totaling 5,302 units throughout New Jersey from an undisclosed private seller for $1.05 billion. The portfolio of workforce housing properties spans 14 cities in North, Central and South New Jersey with a concentration in Union, Morris and Essex counties.