Bluerock Acquires 644 Units in Scottsdale’s Old Town

The property last traded three years ago, for $80.9 million, when it also became subject to a $60.7 million CMBS loan.
Denim Scottsdale. Photo courtesy of CBRE

Bluerock Real Estate has acquired Denim Scottsdale, a 644-unit community in Scottsdale, Ariz., from TruAmerica Multifamily. A team from CBRE’s Phoenix Multifamily Institutional Properties group represented the seller.

According to data provided by Yardi Matrix, TruAmerica Multifamily bought the property in 2016, for $80.9 million, from Abacus Capital Group. At that point, Denim Scottsdale became subject to a $60.7 million CMBS loan, due 2023.

The community is located at 7791 E. Osborn Road, in Scottsdale’s Old Town. The property comprises 352 one-bedroom, 264 two-bedroom and 28 three-bedroom units. Floorplans range from 680 to 1,282 square feet. The 1979-built property spans 31 acres and contains 70 one- and two-story buildings with private patios and balconies. Common-area amenities include a fitness center, swimming pools, spa, tennis and basketball courts, along with 818 parking spaces.

The property is situated within walking distance of several restaurants, shops, golf clubs and entertainment venues in Old Town. Large employers in the area include the Mayo Clinic, Scottsdale Healthcare Network, Arizona State University and Scottsdale Unified School District.

According to CBRE Executive Vice President Asher Gunter, Phoenix’s strong market fundamentals are what attracted TruAmerica to this investment. Phoenix rents were up 6.8 percent year-over-year through May, the latest Yardi Matrix report on Phoenix shows, leading all major U.S. metros.