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AVONDALE, AZ-Scottsdale-based PEM Real Estate Group has paid $29.3 million for the 240-unit Village at Gateway Pavilions. It’s the buyer’s third closing in six weeks, but it could be its last in the market for awhile.

PEM acquired the three-year-old Village at Gateway Pavilions from developer, Foursite Development LLC. The class A complex, situated on 10.9 acres at 1700 N. 103rd. Ave. was 95% leased at sale time.

Paul Mashni, PEM’s managing member, tells GlobeSt.com that the Village at Gateway Pavilions was bought for its income stream unlike the two previous purchases, both of which were more value-add plays with 95% occupancies and needing a sprucing up. In August, PEM acquired the 282-unit Union Hills Estates at 4101 W. Union Hills Dr. in Glendale for $24.61 million and 260-unit Autumn Creek Apartments at 1320 N. McQueen Rd. in Chandler for $31.97 million. Union Hills was built 44 years ago and Autumn Creek came on line in 1984.

The Village at Gateway Pavilions, built in 2004, has monthly rents from $805 to $1,020 for one-, two- and three-bedroom units, ranging from 776 sf to 1,174 sf. PEM’s new asset had been marketed by David Fogler and Steven Nicoluzakis with Phoenix-based Grubb & Ellis/BRE Commercial LLC.

Mashni says PEM is turning its focus to other markets after making the triple play in the Phoenix metro. “With all that’s been going on in the debt markets, we’re looking at other asset classes in other markets,” he says. Atlanta, Denver and Seattle will be on his watch list while the team also investigates acquisition opportunities in Canada and United Kingdom.

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