CHANDLER, AZ-Weidner Investment Services has acquired OcotilloSprings, a 272-unit apartment complex, for $24.7 million. Theluxury property represents the Kirkland, WA-based buyer’s fifthinvestment in the Phoenix market since June.

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Situated within the Ocotillo master-planned community at 825 W.Queen Creek Rd., Ocotillo Springs was sold by a Boston-basedprivate equity firm that had owned the property for more than eightyears. It had a list price of $25.52 million.

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During its 30-day marketing period, the 12-year-old property wasshown 40 times and received 35 offers, according to Tyler Anderson,vice chairman of CBRE’s Phoenix office. He and Sean Cunninghambrokered the deal.

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“That was the kind of interest we expected given the amount ofcapital that is chasing a limited supply of class A propertiesright now,” Anderson tells GlobeSt. He notes that much of theinterest in Ocotillo Springs centered on the property’s pricing andfuture upside.

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“Phoenix rental rates are back to pre-2000 rent levels, andthere will be a lot of upside as rents return to normal levels,”Anderson says. “Plus, this pricing is still substantially belowpeak pricing and replacement cost. It probably would have sold for$160,000 to $165,000 per unit during the peak.”

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Weidner’s ability to close quickly won the deal for the firm.“Other buyers offered the same price as Weidner, but its terms werebetter,” Anderson says.

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Ocotillo Springs offers a mix of one, two and three-bedroomunits ranging from 741 square feet to 1,182 square feet. Rentsrange from $843 to $1,139 per month.

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Individual units come in several contemporary floor plans withnine-foot ceilings, bay windows, private entryways, oversizedpatios and designer kitchens. It features a luxury amenity packageincluding: numerous water features, two resort-style swimmingpools, a state-of-the-art fitness center, an upscale clubhouse andleasing center and several spacious, open courtyards. The propertywas 98% occupied at the time of sale.

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In addition to Ocotillo Springs, Weidner recently acquiredMonterra, a 258-unit, class A apartment complex, for $16.7 millionin an off-market transaction. And in July, the firm invested about$52 million in Indigo at Trianna and Barossa at Trianna, two classA apartment complexes in Peoria, AZ, totaling 732 units, andanother $20 million to buy the 220-unit Sonoma Landing in Gilbert,AZ.

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In a short period, Weidner has become one of the largestapartment owners in Phoenix, accumulating a portfolio with morethan 2,500 units. The company also owns apartment communities inAlaska, Colorado, Texas and Canada.

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