PHOENIX—CBRE has completed the sale of a rental property in North Central Phoenix. The former multifamily rental property will be converted to townhomes for sale. The Valencia Townhome community is located at 550 W. Maryland Ave.

CBRE multifamily investment properties' Brian Smucker and Jeff Seaman negotiated the transaction. The buyer was Valencia Townhomes, LLC of Scottsdale. The seller was American Residential Properties, Inc., also of Scottsdale.

Valencia Townhomes is a class A, luxury 36-unit garden-style townhome community located in North Central Phoenix. The community consists of two two-story frame and stucco buildings constructed in 2009. The original developer planned to sell the units individually. After the downturn, the community was sold to American Residential and units were turned into high-end rentals. The new buyer has plans to revert the townhomes back to individual units for sale.

“The residential market has seen significant improvement through the first half of the year and the Valencia Townhomes will be well received as they're brought to market,” says CBRE's Seaman. “This is a highly desirable area of Phoenix with proximity to great boutique retailers, independent restaurants and the downtown, midtown and Camelback Corridor employment districts.

Seaman continues, “The average single-family home price within a mile of Valencia is $594,000, or $187 per square foot. Comparatively, these properties will offer homebuyers looking to locate in the Uptown area an affordable entry point without having to sacrifice a luxury environment.”

According to recent reports by The Arizona Republic, the housing market continues to improve and demand from homebuyers, particularly for relatively affordable houses, continues to grow as the number of houses for sale drops. Demand is also having an effect on home prices. In May, it was reported that metropolitan Phoenix's median home price climbed more than 5% and is more than 10% higher than a year ago. The Valley's median home price reached $223,000 in May, up from $212,000 in April. In May 2014, the area's median price was $200,000. Additionally, home sales ticked up one percent in May, while houses listed for sale fell 7%.

"Phoenicians are increasingly choosing to live in vibrant, close-in communities like Uptown,” says Keith Ricker, manager, Valencia Townhomes, LLC. “While we haven't yet set pricing, we are excited to begin offering these luxury townhome-style condominiums for sale in early fall and plan to do so at a price point that will allow first-time homebuyers an opportunity to become a part of this fantastic community."

The Valencia Townhome community features two oversized floor plans that feature two bedroom, two and one half bathroom units at 1,356 square feet and two-bedroom, two bathroom loft units at 1,445 square feet. All units include a detached garage, 18-inch porcelain tile flooring, new contemporary cabinetry with premium hardware, gourmet kitchens with granite Countertops and backsplashes, full-size stainless steel appliances, full-sized washers and dryers, walk-in closets, private balconies, custom-made iron and glass front doors and wrought iron fenced front patios. The community also features a resort-style pool with outdoor kitchen and lounge area, a fitness center, guest parking, and lighted walkways and common areas.

The asset sold for $6.59 million.

Instant Insights /

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