Read the original article here by Greg Isaacson, Multi-Housing News. Image courtesy of CBRE.
MG Properties Group has acquired Biscayne Bay, a 512-unit apartment community in Chandler, Ariz., from Everest Holdings for $110.3 million. The sale price equates to $215,332 per unit or $232 per square foot for the asset located at 300 E. Warner Road, southeast of Phoenix.
The sale was subject to a $71.7 million loan held by Fannie Mae, according to Yardi Matrix data. Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch with CBRE’s Phoenix Multifamily Institutional Properties team represented the seller, while Rocco Mandala of CBRE’s Debt & Structured Finance team arranged the financing.
Built in 2000, Biscayne Bay changed hands five times prior to the latest sale, appreciating in value with each transaction. Everest Holdings purchased the property from PrivatePortfolio Group for $71.5 million in November 2016.
The 11-building community features one-, two- and three-bedroom units with 9-foot ceilings, walk-in closets, washers and dryers and large patios. Amenities include two swimming pools, volleyball and basketball courts, a playground, putting green and picnic areas.
Phoenix On Fire
The Phoenix metro area registered rent growth of 6.8 percent year-on-year as of May, nearly three times the U.S. average, according to a recent market report by Yardi Matrix. Booming development activity has failed to keep pace with sharp demand for apartments, with occupancy in stabilized properties inching up 20 basis points over 12 months as of April. According to an analysis by CBRE’s research team, the Chandler/Gilbert submarket led the metropolitan area with 2,425 units of positive net absorption in 2018.
MG Properties, which has an apartment portfolio valued at more than $3 billion, purchased a 379-unit community in Tempe, Ariz., for $73.7 million this past May. TruAmerica Multifamily sold the property located at 1820 E. Bell De Mar Drive.