Phoenix-Area Value-Add Property Commands $42M
The property is 2 miles from Old Town Scottsdale.
29th Street Capital has acquired Dwell Apartment Homes, a 193-unit multifamily community in Scottsdale, Ariz. The asset traded for $41.6 million, or roughly $215,000 per unit, with Avanti Residential being the seller, Yardi Matrix data shows. The property last traded in 2016, for $20.9 million. Haven Residential, a subsidiary of 29SC, will provide property management services.
Built in 1963, the community encompasses 32 buildings which incorporate studio, one- and two-bedroom units ranging from 475 to 810 square feet. Apartment interiors feature stainless-steel appliances, ceiling fans and private balconies or patios. Community amenities include a tennis court, three swimming pools, a fitness center, a business center and three laundry facilities.
The buyer intends to renovate both unit interiors and common-area facilities. Improvement plans involve installing smart home packages and repurposing the garden to an outdoor game area and dog park. The new owner’s Senior Vice President of Acquisitions Dusty Eddy stated in prepared remarks that the purchase is in line with the company’s strategy of buying assets with high value-add potential.
Located at 1923 N. 70th St., the property is 2 miles south of Old Town Scottsdale and roughly 10 miles from downtown Phoenix. Within walking distance of the community there are multiple dining and retail options as well as the Desert Botanical Garden.
Phoenix: A tempering multifamily market
Same as with virtually all other Sun Belt cities, Phoenix multifamily benefited from historic rent growth following the short, pandemic-induced downturn of 2020. However, with the market slowing down to more sustainable levels as of late, year-over-year rent growth in Phoenix clocked in at just 0.6 percent in 2022, according to a recent multifamily report.
However, that did not stop the capital markets from moving, with the metro recording a whopping $11.3 billion in multifamily sales in 2022, not far from the previous year’s record $15 billion, the same data provider shows.