X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PHOENIX-A multifamily apartment investment group has purchased the 169-unit Arcadia Villa apartment complex at 3915 E. Camelback Rd. in Phoenix for $9.4 million. The Mamaroneck, New York-based buyers are operating under Arcadia Villa LLC.

The buyers plan to sink approximately $750,000 into the complex before raising the rents, John Rhoades with the Phoenix office of Hendricks & Partners tells GlobeSt.com. The property was 95% occupied at the time of the sale.

Advertised rents at the complex range from $609 per unit to $689 per unit per month for one bedroom apartments. One-bedroom units range in size from 650 sf to 820 sf. Two bedroom apartments at the complex have 1,000 sf and range in price from $799 to $809 per unit.

According to statistics recently released on the Phoenix multifamily market as of June 2002 by RealFacts, units in the Phoenix central core are leasing for an average of $677 per unit per month. Occupancies in the main Phoenix submarket, which make up approximately 44% of the MSA’s total inventory, are at 90.5%.

RealFacts reports that rents are in decline for the first time since the early 1990s. Rents posted at an average of $709 per unit in March 2002 to the current average across the MSA of $707 per unit. That’s a tiny loss of 0.3% over the past quarter, notes the report, but that loss reduces the gain from a year ago to just 0.1%. This may make the buyers plan to raise rents more difficult.

The sellers, Arcadia Villa Apartments LLC of Eden Prairie, MN have owned the complex since August 2001, says Rhoades. The property garnered a 7.5% cap rate. Rhoades notes that a selling point for the complex was its primo location at 40th Street and Camelback Road in Phoenix.

While Rhoades was close to the deal, Patrick Slavin also of the Phoenix office of Hendricks & Partners actually negotiated the transaction.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.