New Arizona Property Changes Hands for $91M
Developer Embrey Partners sold Riata, a 300-unit luxury multifamily community in the Phoenix area.
EPI LP has acquired Riata, a newly built, 300-unit Class A multifamily community in the Phoenix suburb of Chandler, Ariz., from developer and owner Embrey Partners. The property changed hands for $91 million, or $303,333 per unit.
The sale was announced by Institutional Property Advisors, a division of Marcus & Millichap, which represented the buyer.
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Marty Cohan, Marcus & Millichap senior vice president of investments—and an advisor to the buyer—said in a prepared statement the acquisition was a 1031 exchange and the result of a search for a best-in-class multifamily asset following the sale of the buyer’s long-held Northwest Valley apartment property. Cohan said he worked in collaboration with IPA Executive Managing Directors Cliff David and Steve Gebing to manage the execution of the first phase of the 1031 exchange and the purchase of Riata. Ryan Sarbinoff, Marcus & Millichap vice president & regional manager in Phoenix, was the firm’s broker of record in Arizona.
CBRE’s Vice Chairman Tyler Anderson and Sean Cunningham, Executive Vice Presidents Asher Gunter and Matt Pesch, and Associate Mark McFate, all part of the Phoenix Multifamily Institutional Properties team, represented the seller in the transaction.
According to David, Riata is a well-conceived and well-located trophy apartment community. The property leased up rapidly—despite problems created by the coronavirus pandemic—demonstrating strong demand for apartments with high-end amenities adjacent to Chandler’s premier retail options and near the Price Road Corridor, a thriving area with life sciences, aerospace and other high-salaried jobs.
Completed this year, Riata is located at 100 N. hearthstone Way on a 9-acre site immediately south of Chandler Boulevard, within walking distance of the Chandler Fashion Center and close to the Loop 101 and 202 freeways. Nearby employers include Intel, PayPal, Microchip Technology, Northrop Grumman, Wells Fargo, Bank of America and the Chandler Regional Medical Center. Discovery Business Campus and Chandler Airpark are also located near the community.
Riata has 13 four-story buildings with elevators and air-conditioned corridors. The property has one- and two-bedroom floorplans ranging in size from 623 square feet to 1,279 square feet with an average of 890 square feet. Rents range from $1,246 to $1,944 with an average of $1,519, according to Yardi Matrix data. Apartment features include nine-foot ceilings, granite countertops and full-size washers and dryers. Select units offer kitchen islands with pendant lighting and under-counter wine refrigerators. Community amenities include a two-story clubhouse with a dedicated business center; club-style gym with separate yoga and fitness studio; pool and spa; covered seating; fire pit and open sun decks.
The Chandler acquisition is not EPI’s only asset in Arizona. In January 2018, EPI obtained a 10-year-fixed rate $9.5 million loan to acquire The Traditions, a 160-unit apartment community in Mesa, Ariz.
In January this year, Embrey sold Luxe at Mile High, a 382-unit luxury community in downtown Denver, for $145 million. In February, Embrey submitted plans to the City of Phoenix to construct Embrey Kierland North, a 272-unit luxury apartment community proposed for the Scottsdale Road Corridor. A month earlier, Embrey announced it was beginning construction on The Elm at River Park, a 293-unit multifamily development in Fort Worth, Texas.
In April, Embrey Partners secured financing to develop a 338-unit multifamily community at the historic Borden Creamery property in San Antonio expected to deliver by July 2023.