The Praedium Group Buys 367-Unit AZ Community
- Jun 18, 2019
The Praedium Group has acquired Harper, a 367-unit multifamily community in Tempe, Ariz. Built in 2018, the property is located at 4690 S. Lakeshore Drive in the south of the Phoenix-area city.
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The company bought the asset from JLB Partners, and the transaction was subject to a $57 million loan held by New York Life Insurance Co., according to Yardi Matrix data. The property consists of eight buildings of three stories, offering one-, two- and three-bedroom units ranging in size from 711 to 1,374 square feet.
Harper is nearly 92 percent occupied and features a full range of amenities including a swimming pool, wellness center, pet park and electric car charging stations. The site is 8 miles away from the Phoenix Sky Harbor International Airport and offers connectivity across the state via Interstate-10, Interstate-17 and US-60.
The Praedium Group said in a statement that the multifamily submarket in Tempe south of US-60 had an attractive balance of supply and demand given the constraints on future supply created by high barriers to entry. Demand for Harper is bolstered by the presence of more than 500,000 jobs within a 10-mile radius of the property, with major corporate expansions and relocations in the area slated to generate more employment growth.
Vela Apartments, a 290-unit luxury community in Tempe, changed hands for $73.2 million in May of last year. A partnership between Transwestern Development Co. and FL Lakeside Investor LLC sold the asset less than 5 miles to the north of Harper, after completing construction in 2016.