Colliers International Handles $70M Sale of AZ Property
- Mar 12, 2019
Colliers International in Arizona handled the sale of the 460-unit Laguna Village apartment community in Chandler, Ariz., representing the owner, P.B. Bell, in the $70.3 million deal with Bridge Acquisitions of Salt Lake City.
Located at 102 Palomino Drive, the Class B property has 31 two-story buildings totaling 363,684 square feet. Built in 1985, the community was 94.8 percent occupied at the time of sale. P.B. Bell of Scottsdale, Ariz., had owned the asset since July 2014, when it acquired the property from Standard Phoenix Fund for $38.2 million. That sale was part of a $168.5 million portfolio transaction that included six other multifamily properties totaling 2,759 units in the region, according to Yardi Matrix. Cindy Cooke and Brad Cooke of Colliers represented P.B. Bell in that transaction as well. The Cooke team also arranged a sale in 2007 when the seven properties were part of a 12-property, $427.5 million portfolio deal.
Last month, P.B. Bell sold Alante at the Islands—a 320-unit Class A multifamily asset also located in Chandler—to CWS Capital Partners for $59.6 million, according to Yardi Matrix. Alante at the Islands was part of the portfolio P.B. Bell purchased in 2014. It has 29 two-story buildings and is about 94 percent occupied.
Renovations to Continue
P.B. Bell started renovations at the Laguna Village, which has one- and two-bedroom units ranging in size from 600 square feet to 923 square feet. Rents go from $953 to $1,147 with an average rent of $1,069, according to data provided by Yardi Matrix.
Bridge Acquisitions—which is part of Bridge Investment Group and was self-represented in the current deal—plans to continue the renovation projects, including upgrading all the common area amenities. Properties in the submarket that have completed renovations are achieving rent premiums of up to $200 per month.
All units have full-size washers and dryers. Community amenities currently include a fitness center, clubhouse, playground, three pools and spas. The property has full covered parking with nearly 460 spaces.
“This property is ideally situated for upgrades and repositioning,” Cindy Cooke, senior executive vice president of Colliers International in Arizona, said in a prepared statement. “Laguna Village is located in Chandler, which has seen some of the strongest employment growth in the Valley. The area has also experienced tremendous population growth, and Laguna Village is surrounded by a very limited supply of rental competition.”
Cooke also noted that submarket has had a 10 percent rent growth in recent history and has a vacancy rate below 5 percent.
Located between downtown Chandler and downtown Gilbert, Ariz., Laguna Village is less than five minutes from US-60 and has quick access to the Loop 202 Red Mountain freeway, Loop 101 freeway and Interstate 10.
The multifamily community is located directly across from Westech Corporate Center, a 130-acre master-planned business park that is scheduled to have more than 2,000 employees when completed. Laguna Village is also within 15 minutes of approximately 80 technology companies along the Loop 101 Tech Corridor, including Amazon, Microsoft, GoDaddy and PayPal. The neighborhood is also close to Banner Desert Medical Center and high-end retail in downtown Gilbert.
Last week, Bridge Investment Group was identified as the new owner of an eight-property senior housing portfolio with 887 units across six communities in Alabama, Florida, Georgia and Tennessee. Bridge purchased the portfolio from a joint venture between Harrison Street Real Estate Capital and Dominion Partners LLC. The assets were held across four Harrison Street Opportunity Funds.
Image courtesy of Colliers International