PHOENIX-The Frankel Family Trust of Anaheim, CA has acquired the newly completed 288-unit Broadstone at Desert Sky apartment complex from an entity of Alliance Residential Co. for $38.16 million. Lease-up had hit 65% when the deed changed hands.

The deal was brokered by Mark Forrester and Bob Bruno in the Phoenix office of Hendricks & Partners, who represented both buyer and seller of the complex at 7850 W. McDowell Rd. Bruno tells GlobeSt.com that the property was unusual in a number of respects, including the very high quality of finishes in the units and the low density. Density at the Broadstone at Desert Sky is just under 18 units per acre, compared to typical densities in the high 20-unit-per-acre range for new Phoenix area apartments.

The Broadstone attracted a wide range of prospective buyers, including institutional bidders as well as high-net-worth individuals and investor groups. Bruno says the buyer, Frankel, likes the Phoenix multifamily market, prefers high-quality assets and owns other properties in the area. The selling entity was Broadstone McDowell LLC, an affiliate of Alliance, which was the developer of the project.

"This was a good deal for the buyer and provided a good return for the seller," Bruno tells GlobeSt.com. He explains that Alliance was able to sell an asset that was completed in the last month or two and that the buyer acquired a property that was 65% leased, meaning it holds the potential for significant upside via lease-up. Had the property been fully leased, it would have sold for considerably more, Bruno adds.

The Broadstone complex consists of one- and two-story buildings on 18.38 acres. There are six floor plans with one-, two- and three-bedrooms units averaging 973 sf. Common-area amenities include a resort-style pool and spa, fitness center, clubhouse, theater, conference room, business center and 72 detached garages. Bruno points out the complex features some unusually high-quality finishes, like cherry wood cabinets and full granite countertops in the second phase, which are more typical of condo construction or condo conversions than apartments.