The multifamily market in the Phoenix metropolitan area remains, as it was in 2012, the most popular property sector for investment and new construction. Post-recession job creation, coupled with echo-boomers leaving the nest, has created a leveraged demand for multifamily product. Years of near-zero construction, followed by a rapid increase in demand, has created a landlord’s market throughout most of the valley. Vacancy across the Phoenix metro area is now less than 7 percent. It is expected to fall to less than 6 percent by the end of the year. Rental rates are up 3 percent to 5 percent valley-wide, with some submarkets fairing much better than others. Scottsdale, North Tempe and South Phoenix are some of the areas where rents are up significantly and vacancies are down. Concessions are waning in most regions, though a few remain in parts of the West Valley and Central Black Canyon. This surge in demand is spurring new apartment development catering to Generation Y (echo-boomer) tenants. Many in this demographic subset are choosing apartment living. They are doing so for two reasons: either to avoid the hurdles of qualifying for a home mortgage or to enjoy higher-end finishes and amenities that are found …
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PHOENIX — CNL Healthcare Properties has purchased six medical facilities throughout the U.S. for $59.5 million. Four of these facilities are located out West. They include the John C. Lincoln Medical Plaza I and II and North Mountain Medical Plaza in Phoenix, as well as Escondido Medical Arts Center in the San Diego submarket of Escondido. The Phoenix properties contain a total of 73,666 square feet. They are leased to multiple tenants, including John C. Lincoln/Scottsdale Health, which occupies about 45 percent of the buildings. The 49,302-square-foot Escondido Medical Arts Center in Escondido is an outpatient medical office building that is leased to tenants like Graybill Medical Group.The Phoenix properties will be managed and leased by Holladay Properties’ healthcare division. The San Diego facility will be managed by Lincoln Harris CSG, an affiliate of Lincoln Property Company.The remaining properties are located in Ohio and Kansas. The portfolio contains a total of 181,890 square feet throughout a mix of single- and multi-tenant buildings.
BELMONT, CALIF. — Grosvenor Americas has purchased the 195-unit Carlmont Woods Apartments in Belmont for an undisclosed sum. The community is located at 2515 Carlmont Drive just northwest of Silicon Valley. Grosvenor plans to renovate the unit’s interiors and common-area amenities. Carlmont Woods is the firm’s first apartment acquisition in the Bay Area. The property was marketed by Kara Wiard of Eastdil Secured.
LAS VEGAS – FPA has purchased the 210-unit Indigo Creek in the Las Vegas submarket of Summerlin for $19.6 million. The community is located at 2200 Club Pacific Way. FPA was represented by David Baird and Brandon Baird of Sperry Van Ness’ Las Vegas office. The seller, Tomanek, was represented by Michael Miyagishima of the firm’s San Francisco office.
PHOENIX — CNL Healthcare Properties has purchased six medical facilities throughout the U.S. for $59.5 million. Four of these facilities are located out West. They include the John C. Lincoln Medical Plaza I and II and North Mountain Medical Plaza in Phoenix, as well as Escondido Medical Arts Center in the San Diego submarket of Escondido. The Phoenix properties contain a total of 73,666 square feet. They are leased to multiple tenants, including John C. Lincoln/Scottsdale Health, which occupies about 45 percent of the buildings. The 49,302-square-foot Escondido Medical Arts Center in Escondido is an outpatient medical office building that is leased to tenants like Graybill Medical Group. The Phoenix properties will be managed and leased by Holladay Properties’ healthcare division. The San Diego facility will be managed by Lincoln Harris CSG, an affiliate of Lincoln Property Company. The remaining properties are located in Ohio and Kansas. The portfolio contains a total of 181,890 square feet throughout a mix of single- and multi-tenant buildings.
BELMONT, CALIF. — Grosvenor Americas has purchased the 195-unit Carlmont Woods Apartments in Belmont for an undisclosed sum. The community is located at 2515 Carlmont Drive just northwest of Silicon Valley. Grosvenor plans to renovate the unit’s interiors and common-area amenities. Carlmont Woods is the firm’s first apartment acquisition in the Bay Area. The property was marketed by Kara Wiard of Eastdil Secured.
LAS VEGAS – FPA has purchased the 210-unit Indigo Creek in the Las Vegas submarket of Summerlin for $19.6 million. The community is located at 2200 Club Pacific Way. FPA was represented by David Baird and Brandon Baird of Sperry Van Ness’ Las Vegas office. The seller, Tomanek, was represented by Michael Miyagishima of the firm’s San Francisco office.
SCOTTSDALE, ARIZ. — Kierland One, a 175,441-square-foot, Class A office building in Scottsdale, has sold to Hines and joint venture equity partner Pacific Coast Capital Partners for an undisclosed sum. The building is located at 16430 N. Scottsdale Road in the Scottsdale Airpark submarket. The building was vacant at the time of sale. The seller, Cornerstone Real Estate Advisers LLC, acted on behalf of an institutional investor. It was represented by Barry Gabel, Mindy Korth and Chris Marchildon of CBRE’s Phoenix office. The JV represented itself in this transaction.
CERRITOS, CALIF. — Cerritos Corporate Center, a 460,356-square-foot industrial business park, has sold to Angelo Gordon for $42.5 million. Gordon worked in partnership with Crowsnest Properties. The center is located at 13810-13950 Cerritos Corporate Drive in Cerritos. The institutional-quality business park is composed of seven free-standing buildings on three parcels. It is currently 95 percent leased. The seller, The Abbey Company, was represented by CBRE’s Kevin Shannon, Darla Longo, Barbara Emmons, Scott Schumacher, Rick McGeaghand John Biven.
PORTLAND, ORE. – The 165-unit Cathedral Apartments development in Portland has received $21.4 million in construction/permanent financing. The community will be located at 8680 North Ivanhoe Street. The 42-year loan features a 4.76 percent fixed rate. It was arranged by HFF’s Thomas Wilson on behalf of St. Johns Ivanhoe LLC. Financing was provided by Greystone, an FHA multifamily lender. The project is hoping to achieve LEED-Platinum certification. If successful, Cathedral Apartments will be the first LEED-Platinum-certified construction project in the nation that was completed by HUD. The project is being developed by W&K Development.