Harvard Investments Sells Phoenix BTR Property for $88M

A Nebraska-based firm has acquired the asset.

FirstStreet Happy Valley is located in Phoenix and includes 212 units. Image courtesy of Harvard Investments

Harvard Investments, a Scottsdale, Ariz.-based firm, has sold FirstStreet Happy Valley, a 212-unit, build-to-rent, single-family home community in Phoenix. Omaha, Neb.-based Spruce Capital Group acquired the project for $87.8 million.

Spruce Capital Group, a private family-owned investment firm, acquired the community at 1717 W. Happy Valley Road for approximately $414,000 per unit.

Robert Trujillo, vice president of Harvard FirstStreet, said in a prepared statement that the price shows there is strong demand for high-quality multifamily properties in good locations. The property is located within walking distance to the Shops at Norterra and is in in proximity to strong employment corridors, other neighborhood services and entertainment. FirstStreet Happy Valley is also close to Interstate 17 and the Loop 101.

The community offers one-, two- and three-bedroom floorplans with attached and detached garages. There are a limited number of carriage units above the garages that have private garage access and are soundproofed. Completed in 2021, the property is about 95 percent occupied. Units range in size from 692 to 1,391 square feet, with an average of 1,094 square feet. Rents range from $1,918 to $2,623, with an average of $2,376, according to Yardi Matrix data. Units have digital locks, washer and dryers and private patios or balconies. The property has 166 one- and two-story buildings and a total of 348 parking spaces. Parking is also available in detached garages for an additional fee.

Amenities include a resort-style pool, spa, fitness center, clubhouse and business center. The 17.14-acre property is pet friendly and has a dog park, as well as a washing station and doggie doors in each residence.

The property became subject to a $45.7 million CMBS loan funded by Fannie Mae on March 25, 2022, according to Yardi Matrix. The 10-year loan, originated by NewPoint Real Estate Capital, has an annual interest rate of 4.36 percent and matures on April 1, 2032. Further details on the sale’s impact on the loan were not available.

Harvard Investments’ BTR Plans

Harvard Investments is developing three additional BTR communities in the Phoenix metro. FirstStreet Ballpark Village in Goodyear, Ariz., will have 251 units and is scheduled to begin leasing in October. Construction is expected to begin in the first quarter of 2024 on the 222-unit FirstStreet Skyline in Buckeye, Ariz., community. The third BTR property in the Phoenix area will be located in Harvard Investments’ Bella Camino master-planned community in San Tan Valley.

The company is also developing a 165-unit BTR community in North Las Vegas, Nev., and two more in Texas and New Mexico. Details were not released on the properties in Texas and New Mexico.

In October 2021, Harvard Investments and joint venture partners Tolls Brothers and Värde Partners acquired Estrella in Goodyear, Ariz., a massive master-planned community in Goodyear, for a reported $212.5 million from NNP III – Estrella Mountain Ranch LLC. The 20,000-acre mixed-use, community was home to more than 7,000 families at the time of the purchase and had more than 18,000 acres of remaining developable land, including sites for multifamily construction.

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