Los Angeles-based SAM Residential Group has acquired 1408 Casitas at Palm Valley, a 168-unit apartment property in Avondale, a submarket of Phoenix, for $36 million from 29^th Street Capital. The deal is a value-add play for the investor.

1408 Casitas at Palm Valley was built in 1984 as a low-density apartment community with casita and townhouse-style homes. The property has one-, two- and three-bedroom floor plans with private patios and yards, faux hardwood floors, full-size washers and dryers, outdoor storage and skylights in every unit. The property also features a full amenity suite with a new fitness center, fire pit, swimming pool, dog park, a playground and a resident lounge.

The Phoenix multifamily market has performed phenomenally through the pandemic, earning a place as one of the hotspots in the US for multifamily investment last year. But, the pandemic merely accelerated growth in the already popular market. Since 2009, Phoenix investors have closed $42 billion in apartment investment sales. During that time, prices on multifamily increased 156%. Affordability is a key driver of growth, particularly in multifamily. Much of the inward population growth is driven by a more affordable quality of life.