24 May 2016

Multi-Unit Rental Properties Hit The Sales Block Big Time



Canada’s Western Wealth Capital Goes on a Shopping Spree in Phoenix
Buys 4-Property Apartment Portfolio, 300 Condos and a Fifth Complex
By Mark Heschmeyer
May 23, 2016
Western Wealth Capital Ltd., a Vancouver, Canada-based multiple-unit rental property investment firm, has become quite active in the Phoenix multifamily market this month.
This week, it has acquired the Greater PHX IV Portfolio, a four-property, 748-unit, real-estate-owned portfolio for $41.5 million (about $55,480/unit).
Last week it acquired 300 of the 440 total units in Signature Place Condominiums in Tempe, AZ, for $40 million (about $133,000 per unit).
And last month, Western Wealth Capital spent $27.25 million for the 397 unit-Valencia Crossing in Mesa (about $68,640/unit).
View property locations here >> https://vimeo.com/user43757085
Greater PHX IV Portfolio “has great geographic diversification throughout metropolitan Phoenix and tremendous operational scale,” said Cliff David, a senior director of Marcus & Millichap’s National Multi Housing Group in Phoenix. “These aspects, combined with the opportunity to enhance a significant portion of the unit interiors at each asset, will enable Western Wealth Capital to advance revenue while leveraging the exterior and common area improvements completed by the seller during their ownership tenure.”
David, and Steve Gebing, a senior director of the firm’s Institutional Property Advisors (IPA) division, represented the seller of the portfolio and procured the buyer.

The properties are as follows.
  • Sandal Ridge, 645 N. Country Club Drive, 196 units developed in 1979 on the periphery of downtown Mesa.
  • Penny Lane, 544 E. Southern Ave., developed in Mesa in 1985 featuring 136 units, each equipped with full-size washer and dryer connections
  • Las Vistas at Papago Park, 1010 N. 48th St., a 200-unit community built in 1982 and situated in the Camelback East Village of Phoenix
  • Desert Wind, 4141 W. McDowell Road, a 216-apartment community in West Phoenix developed in two phases in 1987 and featuring second-story vaulted ceilings and controlled-access, gated entry
Western Wealth Capital’s purchase of the Greater PHX IV Portfolio follows two other multifamily transactions within the past five weeks.
Last week, Western Wealth Capital purchased 300 units at Signature Place Condominiums in Tempe for $40 million.
Originally built in 1996 and converted to condominiums in 2006, Signature Place occupies nearly 24-acres with 48 total buildings located in the South Tempe submarket near Discovery Business Campus, ASU Research Park and the Price Technology Corridor in Chandler, AZ. It includes one, two- and three-bedroom units with a weighted average size of 1,000 square feet.

ABI Multifamily, a multifamily brokerage and advisory services firm, represented both Western Wealth and the seller, Minnesota-based Mercury Investment.
“88% of the units have a proven path for terrific upside in rent potential through modern interior upgrades," said Doug Lazovick, partner at ABI, who along with ABI partner Eddie Chang, arranged the sale.

“Western Wealth Capital believes Phoenix is a strong real estate market with indications it will continue to remain healthy. With improved employment opportunities, affordable housing is a priority for tenants,” said Janet LePage, a founder of Western Wealth Capital. “We are bullish on the Valley and continue to seek more multifamily acquisitions.”

With these purchases, Western Wealth Capital now owns 21 multifamily properties and 3,487 units in the Phoenix area.

For more information on the Greater PHX IV Portfolio sale, see CoStar Comp # 3599843.

For more information on the Signature Place sale, see CoStar Comp #3586993.

For more information on the Valencia Crossing sale, see CoStar Comp # 3563146.
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