By Alexandra Pacurar, Associate Editor
Phoenix—Saltzman Properties recently purchased the Bellagio Apartments in Scottsdale, Ariz., one of the hottest submarkets in Phoenix. According to data collected by Yardi Matrix, the 202-unit multifamily community was purchased for $36.25 million, with Wells Fargo Bank providing a $28 million acquisition loan. Berkadia negotiated the transaction.
The Class A property located at 5635 E. Bell Road was built in 1995 and includes one-, two- and three-bedroom apartments, complete with fully-equipped kitchens, walk-in closets, balconies or patios and laundry facilities. Selected units also feature fireplaces, while residents can opt for cable TV and security services. When it comes to common amenities, the clubhouse with a kitchen and wet bar, the pool and carports are worth mentioning.
The interior units and public areas were partially upgraded by previous owner Bellagio Owner LLC, managed by Holland Partner Group of Denver. The renovation process on all condos will continue under the new ownership, proof that Scottsdale is highly attractive for construction developments. “As one of the premier markets in Arizona, Scottsdale offers strong real estate value add opportunities and the buyer was seeking a high quality property with upgrade potential through renovation,” said Mark Forrester, senior managing director of Berkadia’s Phoenix office.
The multifamily community spreads over 10 acres near State Routes 51 and 101 and is within five miles from top shopping and leisure facilities. Large employers like Honor Health and Verifone are also located in the area. Occupancy at Bellagio Apartments is 95 percent, according to Yardi Matrix, with median monthly rental rates ranging from $1,125 for one-bedroom units to $1,450 for three-bedroom apartments. The community is currently managed by Mark-Taylor Residential.
Phoenix is slowly becoming one of the top-performing markets in the West, with Scottsdale as one of its main emerging submarkets. Rent growth has been highest in the region on account of big companies such as Zenefits and State Farm adding workers. The proximity to the Arizona State University triggered the development of new constructions, making South Scottsdale the location where the largest projects are currently being built. The proximity to offices, restaurants and parks is what makes Scottsdale attractive for Millennials, according to the most recent Yardi Matrix Market Analysis.
Saltzman Properties is a subsidiary of Oregon Pacific Investment and Development Company, based in Portland, which develops and manages properties throughout the Northwest. Its portfolio includes residential, commercial, industrial and land properties in Oregon, Arizona and California. The family business was founded in 1946 by entrepreneur Jack Saltzman.
Image courtesy of Yardi Matrix