PHOENIX-Four years after it acquired the 604-unit San Valiente, CalSTRS has sold it for $66.72 million in an all-cash deal with a first-time buyer in the metro. When the dust settled, the seller had gained $20 million.
The class A complex, designed by Mark-Taylor Residential Inc. of Scottsdale, AZ, rose in phases in 1996 and 1999 at 2220 W. Mission Lane. CalSTRS bought it in May 2002. "It was time for them to sell," explains Tyler Anderson, executive vice president for CB Richard Ellis' Phoenix office, who with Sean Cunningham represented the seller. "They'd bought it some time ago. It earned a good return for them and it was simply a good time in the market to sell it."
Anderson tells GlobeSt.com that 14 offers rolled in during a 30-day marketing period for an infill location in Central Phoenix, with strong entry barriers for additional multifamily construction. He says Colony Realty Partners' strong track record and an ability to close weighed heavily on the seller's decision--as did the all-cash bid. The San Valiente is the Boston-based buyer's first in the area, but it's looking for more, according to Anderson.
Though luxury apartments on the market tend to bring out condominium converters, Anderson points out that the 94%-occupied San Valiente attracted potential investment-only buyers. "It's a little too large for a conversion," he says. "It's proving to be a better long-term hold."
San Valiente has a mix of one-, two- and three-bedroom apartments measuring from 689 sf to 1,199 sf. Monthly rents go from $798 to $1,123.
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