After completing several renovations for an apartment community in Glendale, Ariz., Transwestern Investment Group and Knightvest Capital have sold the property to an undisclosed buyer.
According to Yardi Matrix data, Knightvest acquired Paseo Park from Nuveen Real Estate for $62.4 million in January 2019.
Mike McKenzie, vice president at TIG, said in prepared remarks that the company was able to secure an early sale of Paseo Park due to the successful renovation of the community and the strength of the capital markets. Knightvest also recently sold a 432-unit community in Phoenix to TruAmerica in May.
Roughly a 30-minute commute from Phoenix, Paseo Park has its 480 units spread throughout 35 buildings that offer one-, two- and three-bedroom floorplans ranging in size from 450 to 1,200 square feet. The community also offers two fitness centers, three pools, community barbecue areas, parcel lockers and covered parking. According to TIG, the community was 98.7 percent occupied at the time of the sale.
Paseo Park’s location at 5205 W. Thunderbird Road puts it between two of the area’s main economic drivers, Banner Thunderbird Medical Center and Arizona State University West Campus. According to TIG, the Glendale submarket that the community is located in has seen strong rent growth in the last few years in spite of its reputation as an affordable renter option compared to other submarkets in the Phoenix metro.
OPPORTUNITY FOR FURTHER RENOVATION
Under its ownership, TIG and Knightvest invested substantial capital to renovate certain parts of Paseo Park. The renovations included new signage and exterior painting, as well as improving the community’s leasing office, clubhouse, fitness room and business center.
The previous owners also renovated approximately half of the units to match the standards of newer properties in the submarket. McKenzie added in prepared remarks that the community’s new owner has the opportunity to finish the remaining renovation plans for the units to increase the rental rates across the property.