In a $135.5 million deal, TA Realty has acquired the 288-unit Mountainside community in Phoenix, Yardi Matrix data shows.
Executive Managing Directors Cliff David and Steve Gebing of Institutional Property Advisors represented the seller, KB Investment and Development Co., and procured the buyer.
The 1996-built property spans 14.5 acres and comprises 54 buildings with one-, two- and three-bedroom apartments, averaging 973 square feet. In-unit features include laundry facilities and private balconies or patios. Residents also have access to a fitness center, barbecue areas, a business center, as well as to the recreation facilities at Mountain Park Ranch homeowners association, which include a junior Olympic-size swimming pool and tennis courts.
Located at 3625 E. Ray Road, at the center of Ahwatukee Foothills Village, the community is next to the Mountain Park Pavilion shopping mall and multiple dining options. Sun Ray Park is half a mile away from the property. Interstate 10 is within 2 miles of the community, connecting it to downtown Phoenix.
Strong market fundamentals
The property’s location in a supply-constrained area represented an investment opportunity for the buyers. Only one other community with more than 100 units has been completed in the submarket in the last 20 years and there are no plans for future developments, Cliff David commented in prepared remarks.
Gebing added that the property’s performance is supported by strong market fundamentals and demographics, including an average and median annual income of $133,600 and $99,100, respectively. Moreover, average single-family home values in Mountain Park Ranch exceed $600,000, further sustaining demand for multifamily product.
With a 23.3 percent rent growth as of March and 6.2 percent job growth as of December, Phoenix remains among the nation’s top multifamily markets. Recently, IPA brokered another sale in Ahwatukee Foothills Village. Caspian Properties sold Arboretum at South Mountain, a 312-unit community, to Sares-Regis Group for $118 million.