Berkadia today announced the recent sale of the Bellagio Apartments, a multifamily property located in Scottsdale, Arizona. The $36.25 million sale was completed on March 31, reflecting a $179,455 per-unit price. Senior Managing Director Mark Forrester, Managing Director Ric Holway, Vice President Dan Cheyne and Associate Tom Wolff of the Phoenix office helped facilitate the sale.
The seller, Bellagio Owner, LLC, a Delaware LLC managed by Holland Partner Group of Denver, owned the property for more than three years and completed their business plan, which included partially upgrading the interior units and public areas. The buyer, Saltzman Properties, an Oregon LLC of Portland, Oregon, has plans to complete renovations of all units within the property.
“As one of the premier markets in Arizona, Scottsdale offers strong real estate value add opportunities and the buyer was seeking a high quality property with upgrade potential through renovation,” said Forrester. “This sale demonstrates the robust activity we are seeing throughout the market.”
Built in 1995, the 202-unit property includes one-, two- and three-bedroom floor plans with fully-equipped kitchens, walk-in closets, balconies or patios, fireplaces in select units, laundry facilities and optional cable TV and security systems. Community amenities include a clubhouse with a kitchen and wet bar, fitness center, pool and spa, barbecue grills, carports, garages and security gate.
The Bellagio Apartments are located at 5635 East Bell Road, near State Routes 51 and 101 and within five miles of TPC Scottsdale Golf Club and Kierland Commons Shopping Mall. Top employers in the area include Honor Health, Mayo Clinic, Verifone and The Vanguard Group, Inc.
Vacancy in the Phoenix multifamily market lowered 30 basis points to 5.6 percent in December 2015. During this time, metro-wide asking rents advanced 6.2 percent annually to $914 per month, up from 4.9 percent growth in 2014.