Scottsdale Apartments Command $105M
- Aug 05, 2021
ABI Multifamily has brokered the sale of Sky Ancala Apartments, a 330-unit luxury community in Scottsdale, Ariz., for $104.5 million, $316,667 per unit or $400.24 per square foot.
ABI Multifamily’s Institutional Apartment Group represented by Alon Shnitzer, Rue Bax, Eddie Chang and Doug Lazovick represented both the buyer and seller in the transaction. The buyer was identified only as based in California.
The seller was The Ergas Group of Vancouver, B.C., Canada, according to Yardi Matrix data. The Ergas Group had owned the asset since June 2015, when it acquired the property from Alliance Residential Co. for $41.7 million, $126,212 per unit or $160 per square foot. Alliance Residential had owned the property since November 2006, when it paid $42.4 million, $128,455 per unit or $162 per square foot, according to Yardi Matrix. The property, built in 1988, had at least five owners before Alliance Residential. At the time of the most recent transaction, the asset was 97 percent occupied, Yardi Matrix reported.
Bax of ABI Multifamily, a leading multifamily brokerage and advisory services firm in the Western United States, said in a prepared statement the sales price is a testament to the excellent demographic trends, growing demand and increasing value of the North Scottsdale submarket. Bax said they expect see sales prices higher than $100 million more frequently as the Arizona multifamily market continues its upward trend.
Shnitzer noted the area, which has a current 96.9 percent occupancy rate, has seen rents increase 20 percent over the past year and annual rent increases of 4.6 percent predicted for the next five years. He said in prepared remarks the population is expected to increase nearly 10 percent over the next five years in the area near Sky Anacala Apartments.
Located at 11545 N. Frank Lloyd Wright Blvd., the property has 20 two-story buildings on approximately 14 acres. The unit mix includes 166 one-bedroom/one-bathroom apartments and 164 two bedroom/two-bathroom units with an average size of 791 square feet. Rents range from $1,376 to $1,632 with an average of $1,497, according to Yardi Matrix.
All units include an in-suite washer and dryer. Common area amenities include a business center, coffee bar, sky lounge, picnic area with barbecues, fitness center, resort-style pool, leasing office and covered parking.
Sky Ancala Apartments has easy access to the 101 freeway. The property is also near restaurants, spas, healthcare facilities, recreational activities and retail centers including the Scottsdale Quarter, one of the top outdoor shopping centers in the area. Residents also have a short drive to Scottsdale Airport, Talking Stick Resort, Salt River Fields at Talking Stick, Topgolf, Gainey Ranch Golf Club and OdySea Aquarium. The Ancala Country Club, which has an 18-hole championship golf course, is located within the gated master-planned community of Ancala behind Sky Ancala Apartments.