PHOENIX-A hot market has prompted San Francisco-based McDowell Properties to sell the 672-unit Autumn Ridge Apartments. McDowell, which acquired the class B property for $28.9 million in June 2005, received $52.31 million from Atherton-Newport of Irvine, CA.
During its hold, McDowell completed a major interior and exterior renovation of the asset, positioned at 1944 W. Thunderbird Rd. "We got through about 55% of the interior renovations and the Phoenix market got hot and cap rates low," says Pat McDowell, the company's president. "We saw what some of the properties sold for so we put it on the market and got an extraordinary price at an appealing cap rate."
Colliers International's senior vice president Cindy Cooke teamed with colleagues Tom Bade and Leah Truax to represent McDowell Properties. Cooke tells GlobeSt.com that the buyer was selected within three to four weeks of the listing hitting the market. Atherton-Newport got the nod, partly because it did careful due diligence and research. "They made an offer without upfront contingencies," she says. "They also owned the property right next door so they were a natural buyer for that." Just six months ago, Atherton-Newport acquired the 376-unit Northridge Apartments at 2140 W. Thunderbird Rd.
Autumn Ridge has one-, two- and three-bedroom units with 680 sf to 1,444 sf. Its rents range from $625 to $1,040 per month.
The seller is down to one multifamily asset in Phoenix, the 384-unit Somerset Villa at 909 W. Colter St., which is priced at $60,000 to $65,000 per unit. McDowell tells GlobeSt.com that he'd like to buy again in the area, given the right opportunity. "We're a value-add buyer," he adds. "If we can find the right asset, we'll take a look at it."
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