SCOTTSDALE, AZ-Less than a month after closing on its first luxury multifamily complex in Phoenix, Chicago-based Monaco Development LLC has struck again, acquiring the 240-unit City Place at Paradise Valley for $44.5 million.
As it did with the 440-unit Portofino Apartments, bought last month for $50.6 million, Monaco plans to convert the 94%-occupied City Place, located at 5335 E. Shea Blvd., into condominiums.
"I'm told they'll spend approximately $20,000 per door," says Tyler Anderson, executive vice president in Phoenix with CB Richard Ellis Inc. He and Sean Cunningham, also with CBRE, represented the seller, Invesco Real Estate of Dallas. Monaco used in-house brokers to package the deal.
Invesco received about 18 offers on the property during the 30-day marketing period. The asset hit the market without an ask. "Monaco was competitive," Anderson tells GlobeSt.com about the Chicago-based developer's ability to beat the other bids.
The complex, built in 1993, has an on-site business facility, fitness center and resort-type swimming pool with heated spa. The mix is 96 one-bedroom units from 736 sf to 794 sf; 106 two-bedroom apartments ranging from 1,046 sf to 1,070 sf; and 38 three-bedroom floor plans with 1,248 sf. Rents begin at $806 and to $1,239 per month.
Anderson says Monaco has already begun the conversion. Meanwhile, the buyer is scouting the market for additional acquisitions that are conversion candidates.
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