"The buyer liked the property's age, the fact it was 2002 construction and well below replacement costs. The buyer knows how much it costs to build," says Alon Shnitzer, associate vice president and director in Phoenix for Marcus & Millichap Real Estate Investment Services, who represented Wasatch in the transaction. Mark Forrester and Bob Bruno from Hendricks & Partners' Phoenix Office represented the seller of the 90%-leased complex at 17477 N. Avenue of the Arts.
The buyer also liked the asset's location, which is between two age-restricted, master-planned communities Sun City and Sun City West/Sun City Grand built by Del Webb. It's also is close to spring training facilities for the Kansas City Royals and Texas Rangers baseball clubs.
"They wanted to be in the northwest Phoenix market," Shnitzer tells GlobeSt.com. "It's a growing market and the buyer felt they could hold the property for potentially 10 years, then sell for a nice return on investment."
Situated on 10 acres, Canyon Ridge Apartments has one-, two- and three-bedroom units from 740 sf to 1,026 sf. Monthly rents are $799 to $1,099. The broker says the buyer's in-house team, Wasatch Property Management, will make some minor upgrades and oversee the asset.
In recent weeks, Wasatch sold the 203-unit Brookside Apartments at 6131 W. Thomas Rd. in Phoenix to the Damon Bouet Family Trust in Scottsdale for a little more than $10 million. Shnitzer says that, to his knowledge, Wasatch isn't actively looking for additional acquisitions.
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