By Dees Stribling, Contributing Editor
Phoenix—TruAmerica Multifamily, a California investor, has acquired Avenue 25 Apartments, a 254-unit multifamily community in Phoenix, for $35.4 million, or about $139,370 a unit. The seller was Scottsdale-based NextGen Apartments, who developed the property, and the locally based ABI Multifamily brokered the deal, representing both parties.
The property sits on about nine acres in north Phoenix, with a total of 15 buildings, one of which is a dedicated leasing office. NextGen recently finished the structure, which received its certificate of occupancy only in April.
According to ABI managing partner Alon Shnitzer, the deal reinforces the strength of the apartment investment market in Phoenix, besides the overall economy of the area. At the close of the deal, Avenue 25 Apartments was about 65 percent leased since in its initial lease-up period started.
Common amenities include gated access, covered reserved parking, an electric vehicle charging stations, and sundecks with poolside Wi-Fi. The property also features a business center and conference room, and a rec center with gaming consoles, pool table and Foosball. Units include private balconies or patios.
Steady job creation and rising home prices are fueling demand for apartments in the Phoenix metro and pulling vacancy down to its lowest level since 2007, investment specialist Marcus & Millichap notes. This year, employment growth is expected to surpass the national average for a fourth consecutive year, with the government and construction sectors driving job creation. The demand will put downward pressure on apartment vacancy metro-wide, with the company predicting it will tick down 30 basis points to 6.9 percent by the end of this year; rents are also rising.