Cortland Acquires Arizona Community for $97M

Institutional Property Advisors brokered the sale of the 415-unit MetroPointe in Tempe.
MetroPointe. Image courtesy of Institutional Property Advisors

Responding to a growing local economy, Cortland has purchased MetroPointe Apartments in Tempe, Ariz., for $96.8 million. Steve Gebing and Cliff David from Institutional Property Advisors, a division of Marcus & Millichap, represented the seller, Rockwood Capital, and procured the buyer.

The 415-unit community located at 7017 S. Priest Drive was built in 2009 and includes studios, one-, two- and three-bedroom apartments starting at 530 square feet. The units come with in-unit washer/dryers and patio/balconies while the property’s amenities include two swimming pools, private garages, a heated spa, outdoor lounge, resident clubhouse, fitness center, volleyball court, coffee bar, dog park, and business center. The three-story property has attracted a 95.7 percent occupancy rate, according to Yardi Matrix data.

Rockwood first acquired the property from Security Properties in July 2018 for $76 million with the help of a $58.5 million loan, according to Yardi Matrix data. Now under new ownership, Cortland has already rebranded the community to Cortland South Mountain and is also planning to renovate the entire property, Gebing told Multi-Housing News. Gebing and David also recently brokered a $90 million sale of a 385-unit multifamily community in Phoenix.

PHOENIX’S RISING POPULARITY

Gebing said in prepared remarks that Phoenix’s business-friendly environment has been attracting corporate relocations. The city is also seeing capital flow into the multifamily sector, Gebing added in his prepared statement.

Just outside of Phoenix, Tempe also is home to many major employers including Arizona State University, American Express, Benchmark Electronics, DriveTime Automotive Group and Nationwide Credit. The city is also near several employment nodes like the Price Corridor in Chandler, Ariz., the ASU Research Park and Tempe’s Northwest and Southwest industrial corridors and Discovery Business Campus.