Sargard Buys 209-Unit Phoenix-Area Community
Cushman & Wakefield procured the buyer on behalf of the seller.
Sargard Real Estate has acquired Trovita Rio, a 209-unit community in Tempe, Ariz. The property was purchased for $73.3 million, Yardi Matrix data shows.
The mid-rise apartment building sits directly across from Tempe Town Lake. It features a rooftop entertainment deck, fitness center, community clubhouse and EV charging stations.
Situated at 701 West Rio Salado Parkway, residents are in close proximity to Arizona State University and Phoenix’s largest employment corridor. Downtown Phoenix is approximately 10 miles east.
The community was completed in 2019 and in the same year was purchased from Crescent Communities for $66.3 million, according to the same data. Trovita Rio is 92.8 percent occupied and managed by Avenue5 Residential.
Cushman & Wakefield Executive Managing Directors David Fogler and Steven Nicoluzakis procured the buyer on behalf of the seller in the transaction.
Phoenix’s strong demand
As of June, Phoenix multifamily fundamentals demonstrated healthy demand. Advertised asking rents were up 0.1 percent on a trailing three-month basis through April, following 20 months of flat or decreased performance. This is largely due to an increase in supply that hit the market last year, decreasing occupancy by 80 basis points year-over-year through March. Yet, absorption numbers reflect a strong demand.
Earlier this month in the same Tempe market, Greenlight Communities closed on Cabana Kyrene, a 229-unit workforce housing project. The Tempe City Council unanimously approved the project on Oct. 1, which also included rezoning the site from a planned commercial center into a multifamily residential high-density neighborhood.