Western Wealth Completes $6M Divestment in Phoenix
- Mar 08, 2018
Western Wealth Capital has sold its interest in a community located in Phoenix’s Midtown Melrose District. The Canadian company divested the 41 condominium units in aggregate to Skyline Cos. for $6 million. The transaction represents WWC’s 12th divestment to date.
Solterra is a 60-unit gated community located at 4350 N. 5th Ave. Built in 2006, the property offers a mix of one- and two-bedroom floorplans averaging 841 square feet. The nearby 7th Avenue features multiple restaurants and retailers, while North Central Avenue, situated a few minutes away, provides transit options to downtown Phoenix. The Phoenix Community College is two miles from the property, while the Camelback corridor can be reached in about 10 minutes.
WWC acquired its 41-unit stake in Solterra for $4.5 million in 2015. The current transaction represents a 32 percent price increase compared to the initial acquisition. The company allocated capital for improvements and optimized operations to increase the property’s revenue. Investors backing WWC are expected to receive a return of approximately 35 percent over the 27-month term.
Development in Phoenix is on the rise, according to the latest Yardi Matrix report. The city’s diversifying economy will benefit from major investments announced by tech companies, including Intel’s expansion, which is expected to bring 3,000 jobs to the area. On the multifamily side, about 7,500 units are scheduled to come online this year, while the metro’s average rent is set to increase by approximately 5 percent.
“Western Wealth Capital acquired the property several years ago having been attracted to the A class asset’s up-and-coming location. With the numerous new developments and planned construction, the seller’s instincts on the area’s transformation have been proven correct,” said Eddie Chang, partner at ABI Multifamily, in a prepared statement.
The ABI team representing WWC in the transaction included Chang, as well as Partner Doug Lazovick, Senior Managing Partners John Kobierowski, Alon Shnitzer and Rue Bax. Skyline Cos. was represented by Samir Sawhney of XCD Realty & Property Management.
Image courtesy of ABI Multifamily