Phoenix Apartments Command $110M
Knightvest Capital acquired the asset for the second-highest price recorded for a multifamily property in Arizona.
By Keith Loria
Knightvest Capital has acquired Red Mountain Villas, a 768-unit apartment community in Phoenix, Ariz., from Weidner Apartment Homes for $110 million. The price represents the second-highest recorded for a multifamily property in the state.
Institutional Property Advisors, a division of Marcus & Millichap, facilitated the sale on behalf of both parties. “The appeal was an exceptional location in the geographic center of the Phoenix MSA coupled with value-add opportunity available through common area and apartment interiors renovations,” Steven M. Gebing, Marcus & Millichap’s senior managing director, told MHN.
Developed as a three-phase project in 1987, 1988, and 1996, Red Mountain Villas commands an exceptional location in the geographic center of the Phoenix MSA, offering outstanding access to the Valley’s most prestigious, diversified employment corridors.
Located on nearly 30 acres at 815 North 52nd St., the community consists of 200 townhomes in addition to its one-, two- and three-bedroom units, which feature fully-equipped kitchens, spacious walk-in closets, and private patios or balconies. Vaulted ceilings, washers and dryers, large pantries, additional outdoor storage space, and sweeping mountain views are also available in select apartments.
The community features many shared amenities, including an oversized koi pond, six resort-inspired swimming pools and access to the Papago Golf Course. The property also features four spas with poolside cabanas, a stand-alone leasing office and clubhouse, a spacious 24-hour fitness center, dog park, sand volleyball court, two racquetball courts, controlled access gated entry, as well as hiking and biking trail access to the Red Mountain Preserve.
Red Mountain Villas is nearby the 44th Street/Gateway Corridor and airport area, the Papago Park Center and the Central Avenue Office Corridor employment centers, and offers close access to Loop 202/the Red Mountain Freeway, Interstate 10, State Route 51, and Loop 101/the Price Freeway.
Phoenix is Rising
According to Gebing, excellent submarket fundamentals, the rapidly increasing costs of multifamily construction, and escalating asking rents for newly constructed core assets in neighboring submarkets enhance the value of the property.
“Job gains and household growth steered the underlying economic message within the Phoenix MSA in 2017, with value-add buyers expanding their appetite on strong affordability metrics and the significant rental rate chasm on display between value-add and core real estate,” Gebing said. “Transaction velocity declined moderately in 2017 by 9 percent, primarily as a function of slower second-quarter sales activity on the heels of the 2016 presidential election.”
Knightvest Capital is planning a significant investment in renovations of the community’s exterior, general amenities, and unit interiors.
Earlier this week, Knightvest Capital was ranked as one of the Top 10 apartment owners in Dallas, Texas.