Paragon Sells Phoenix BTR Property for $57M
The 195-unit community came online last year.
Hampton Meridian, a 195-unit, single-family rental community in Apache Junction, Ariz., has changed hands for $56.5 million. Paragon Development Group sold it to a private individual, who financed the purchase with a $35 million loan, according to Yardi Matrix data. Institutional Property Advisors arranged the deal.
Paragon paid $3.1 million for the nearly 16-acre development site in 2021 and Sunwest Bank originated a $25.6 million construction loan that same year. The community debuted in 2023.
Hampton Meridian followed Hampton East, another build-to-rent community developed by Paragon. The firm sold the 143-unit property in Mesa, Ariz., for $38 million in 2021, Yardi Matrix shows.
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Carrying the address 3000 W. Southern Ave., Hampton Meridian encompasses one- to three-bedroom attached and detached homes ranging from 645 to 1,295 square feet. Units feature double-paned windows and private backyards. Community amenities comprise a swimming pool, spa and gym, as well as cabanas, among others.
The community is less than 1 mile from U.S. Route 60 and about 35 miles southeast of downtown Phoenix. Some 34 million square feet of retail space are within 15 miles.
IPA Executive Managing Directors Steve Gebing and Cliff David represented the seller and procured the buyer.
Metro Phoenix BTR units get cheaper
The Valley of the Sun witnessed five build-to-rent communities of 50 or more units changing hands for a total of more than $238 million year-to-date through December, according to Yardi Matrix data. In total, roughly 850 rental homes traded with an average price per unit north of $278,400.
The figures were mostly aligned with the sales registered last year. Throughout 2023, less units traded—some 720 single-family rental homes—for some $298 million, the same data provider shows. Units were pricier, selling for an average $413,300 each.
One such property that sold last year is Cyrene at Estrella, a 64-unit BTR community in Goodyear, Ariz. BGO acquired it after investing $500 million in 1Sharpe’s single-family rental platform. The asset traded for $25.6 million, according to Yardi Matrix data.
