Get Ready For Apartment Portfolio Sales to Pick Up in Phoenix

Apartment portfolio sales may be on the rise in Phoenix as a result of the strong fundamentals and market growth. Phoenix is not generally known for portfolio sales, but there have been a few more transactions in the first half of the year over the first half of 2017. Owners have been motivated to bring portfolios to market by strong pricing, deep capital and growing investor demand. While it is hard to say if a few more transactions makes a trend, the activity is certainly an example of the improvement in the market.

“There have been more portfolio sales this year,” Tyler Anderson, vice chairman at CBRE, tells GlobeSt.com. “In general, we aren’t a big portfolio market, but we have seen a few more this year. I don’t know that is a significant trend; however, when a portfolio does come to market, the depth of capital and demand is very significant. Whether the deal is purchased as a portfolio or ends up being purchased individually, there is a lot of capital that wants to buy in Phoenix.”

Anderson recently brokered a three-property apartment portfolio deal in Tempe and Phoenix, along with his CBRE colleagues Sean Cunningham, Asher Gunter and Matt Pesch. IMT Residential sold the portfolio to Priderock Capital Partners for $153.5 million. “The seller wanted to take advantage of the depth of capital and the pricing that is in the market today because of where interest rates are,” says Anderson. “The depth of capital for value-add deals is extraordinary, and this portfolio checked all of the boxes. It is standard units and had never been renovated, and they are in well-positioned infill markets. The buyer will benefit from doing upgrades to the community amenities and the interiors.”