Tempe Luxury Property Trades for $73M
Transwestern Development built the 290-unit Vela Apartments in partnership with a private investor. The developer obtained $34 million in construction financing from Bank of the Ozarks.
By Tudor Scolca
A partnership between Transwestern Development Co. and FL Lakeside Investor LLC has sold a 290-unit luxury community in Tempe, Ariz. Pacific Development Partners acquired the asset for $73.2 million after it obtained a $47.5 million loan, originated and held by Metropolitan Life Insurance Co.
The partnership finished construction at Vela Apartments in 2016 with help from Bank of the Ozarks, which originated the $34.2 million loan used to fund the project in 2014. The luxury community is located at 555 N. College Ave., adjacent to the Tempe Town Lake Marina and the Red Mountain Freeway. Vela comprises 211 one-bedroom and 76 two-bedroom units ranging in size from 724 to 1,160 square feet. Each of the remaining three units measures 2,114 square feet and is leased as a live-work space.
In-unit high-end touches include Energy Star appliances, quartz countertops, prep islands, floating vanities and private balconies. Vela Apartments is bordered by the Tempe Town Lake to the south and has approximately 500 feet of water frontage. Common amenities include:
- swimming pool with cabanas
- fitness center with monitoring equipment
- indoor lounge
- fire pits with grilling area
- courtyard with gaming area
- outdoor movie projector
- indoor bike storage
The area surrounding the luxury community is highly amenitized on both sides of the lake. Restaurants and retailers are situated nearby as are several parks and golf courses. The Tempe Campus of Arizona State University can be reached within minutes. Loop 202 is adjacent to the community, enabling transportation across the metro area.
“We are pleased to see this community come full circle and trade to a credit investor. The lakefront views gave this property a unique offering to attract young professionals seeking an amenity-rich lifestyle near major employment and retail hubs,” said Josh Delk, vice president at Transwestern Development Co., in a prepared statement.
Vela was 93 percent occupied at the time of the sale. According to Yardi Matrix, average monthly rent is at $1,583. Transwestern and its partner were represented by CBRE in the transaction. The company recently opened another luxury community in Houston, expected to be fully operational by summer this year.
Images courtesy of Transwestern Development Co.