Next Wave Sells $42M Phoenix Asset
The 160-unit community last traded in 2019 for half the current price.
Next Wave Investors has sold Westover Parc Apartments, a 160-unit community in Phoenix, to an East Coast-based buyer for $41.6 million.
Westover Parc Apartments encompasses one- to three-bedroom floorplans ranging from 681 to 1,085 square feet, according to Yardi Matrix. Property amenities include a pool, picnic areas and barbecue grills.
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Completed in 2002 and located at 6515 W. McDowell Road in the Maryvale neighborhood, the community has several shopping, dining and entertainment options within a 2-mile radius. The property is also just off Interstate 10.
Initially, Next Wave only bought 103 units as condominiums in late 2019 and subsequently acquired the remaining units from several different sellers over six months. The entire community then amounted to $22 million, said Jordan Fisher, principal at Next Wave, in prepared remarks.
The company scored a $21.2 million Freddie Mac refinancing package mid-pandemic and repositioned the condo project as an apartment community, nearly doubling its value in just over two years.
Through its value-add program, Next Wave implemented a security system, renovated almost all units, repainted the buildings in addition to reconditioning the pool area, clubhouse and fitness center.
Substantial economic development and population growth are the main factors driving demand in Phoenix, one of the most dynamic multifamily markets in the U.S. this year. Large companies continue to flock to the Valley, bringing employment opportunities and increasing the need for high-quality rental housing.