ABI Multifamily Brokers Two Phoenix MF Sales
- Oct 09, 2014
Phoenix—Winding Creek Apartments LLC has acquired Winding Creek, a 54-unit garden-style apartment community in Phoenix, from J & Z Property Management LLC for $1.7 million.
Earlier in the week, the same buyer also purchased the Fountainhead Apartments, a two-story garden-style apartment community in Phoenix from Clancy & Associates for $8.145 million.
ABI Multifamily brokered both transactions.
“As it pertains to the buying entity, both are value add 1980s individually metered for utilities apartment complexes, which the buyer has seen success with in Phoenix in the past,” Alon Shnitzer, ABI Multifamily’s senior managing partner, tells MHN. “They typically buy in a down or up in coming market, like Phoenix, make capital improvements and then increase occupancy and/or rents. The buyer will hold until the market seems to peak.”
Located at 2501 West Ocotillo Road, Winding Creek was originally constructed in 1982 and sits in Northwest Phoenix on the Interstate 17 Corridor. It offers a mix of one- and two-bedroom apartments and features individual HVAC systems. Amenities include a swimming pool, on-site laundry facilities and ample parking.
Located at 4326 North 35th Ave., the Fountainhead Apartments offer 273 units comprised of both one- and two-bedrooms. All apartments include individual HVAC systems. Common area amenities include three community swimming pools, a clubhouse, two on-site laundry facilities and ample covered/open parking.
“This neighborhood provides a prime example of the resurgence happening throughout the Phoenix Metro area,” Shnitzer says. “A few years back, when changes were being made to state immigration laws, this area and others like it, saw a significant reduction in renters. This property, in particular, experienced occupancies in the 60 percent range for a period of time. Due to a combination of reasons, including neighborhood revitalization efforts, improvements in the economy and resident profiles, and significant growth of nearby Grand Canyon University, Fountainhead has seen occupancies rise to 97 percent during the escrow process for this sale.”
According to Shnitzer, the new owner will improve both properties’ physical conditions and streamline operations.
“The appeal is both have 1980’s construction, are individually metered for utilities, and the condition of both was fair, but dated and physical improvements will be made by the buyer to increase rents/occupancy and raise the property value,” he says. “The overall pricing on a per unit basis was also very attractive, with an average for both around $30,000/unit, which historically is on the lower end of the pricing.”