PHOENIX-A local buyer has paid $15 million to acquire the 264-unit Quail Point Apartments in a one-off transaction. The sale means nearly half of a 1,240-unit value-add portfolio, valued at $76.8 million, has been sold or is in escrow.
"I'd say that her plan is to drive rents through capital infusion," Todd Braun, senior director for Cushman & Wakefield of Arizona Inc., tells GlobeSt.com. New Castle Investments LLC is still fine-tuning the cap-ex budget for the 90%-leased complex at 3045 N. 67th Ave.
"There appears to be a decent chance for a 7% to 10% rent growth following rehab," says Braun, who teamed with C&W director Jim Crews to represent the seller, Arizona Progressive LLC of Phoenix. He says Quail Point's other strong factors are its location next to a neighborhood grocery-anchored shopping center, direct frontage along a major road and being in a submarket with relatively strong job creation potential.
The 20-year-old complex has one- and two-bedroom units, ranging from 568 sf to 908 sf. Braun says the rents are market-rate at $544 to $595 per month for one-bedroom apartments and $640 to $696 for the two-bedroom units.
Braun says Quail Point's new owner was up against a handful of offers. The "competitive bid" was the dealmaker, he adds.
Braun says the seller of the Metro Phoenix Value-Add Portfolio has more closings scheduled in 30 to 60 days. It's been nearly two months since the last one, the 166-unit Phoenician Palms Apartments at 3421 W. Dunlap Ave.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.