Decron Properties Pays $96M for Suburban Phoenix Apartments
- May 07, 2021
Alliance Residential Co. has sold Broadstone Rio Salado, a 276-unit Class A community in Tempe, Ariz., to Decron Properties for $96.2 million. The purchase is Decron’s first acquisition within the state.
Broadstone Rio Salado delivered at the start of this year, according to Yardi Matrix, following approximately two years of construction. Alliance financed the development with a $35.9 million project loan from TCF National Bank.
Located at 2325 E. Rio Salado Parkway, the 12-building garden-style community is at the southeast corner of the intersection between the Red Mountain Freeway and Loop 101, 2 miles east of Arizona State University’s campus and 10 miles from downtown Phoenix. The property’s studio, one- and two-bedroom units have floorplans between 587 and 1,221 square feet, and amenities include a fitness center, bike storage, a swimming pool and a clubroom.
Multifamily investment in Phoenix has exploded this year, with nearly $2.7 billion closed through the end of April, according to Yardi Matrix data. Tempe in particular has drawn significant investor interest: More than $500 million in sales have closed so far this year within the eastern suburb.
Development activity in Tempe is also strong, with 2,620 units under construction. More projects are expected to add to the pipeline in the coming months, including an 826-bed luxury student housing development at Arizona State University.