Phoenix—The P.B. Bell Cos., a multifamily development and management specialist, has acquired The Boulevard, a 294-unit apartment property in north Phoenix. Colorado-based Slavin Residential sold the community for $33.5 million.
The buyer plans to invest about $2 million to make improvements to the property, which was built in 1994, updating both interior living areas and exterior common areas. The clubhouse, pool area, leasing office and outdoor common areas will all see enhancements, as will cabinets, lighting, flooring and countertops in the individual units.
Phoenix enjoys a healthy multifamily market, though a significant addition to supply in some parts of the metro is going to push vacancy rates upward somewhat this year, predicts investment specialist Marcus & Millichap. In 2014, about 4,950 new units came on line; this year, about 7,950 units will, kicking vacancies up to an estimated 6.7 percent by the end of the year, compared with 6.2 percent at the end of ’14.
Even so, the company forecasts, apartment rents will rise 2.1 percent this year, a drop from 4.1 percent last year, but still an increase. Local employment grow of 39,000 last year, and an anticipated 44,600 this year, is sustaining demand for rental housing in the Phoenix market.
CBRE Phoenix’s Sean Cunningham and Tyler Anderson brokered the transaction. Jim Pierson and Keaton Merrell of Legacy Capital Advisors arranged a $26.8 million, non-recourse acquisition loan with Freddie Mac.