CBRE has finalized the sale of Scottsdale Springs, a 644-unit multifamily community located in Downtown Scottsdale, Arizona at 7791 East Osborn Road. The property commanded a sale price of $80.9 million.
Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch with CBRE’s Phoenix office negotiated the transaction on behalf of the seller, New York, NY-based Abacus Capital Group. The buyer was Los Angeles-based TruAmerica Multifamily, which has been one of the country’s most active multifamily investors over the past three years.
Scottsdale Springs is centrally located proximate to Downtown Scottsdale and surrounded by a diversified, high-wage employment base. Downtown Scottsdale is highly walkable and residents have access to one-of-a-kind restaurants and entertainment venues surrounding the community.
“Scottsdale Springs features some of the lowest rents in Downtown Scottsdale and presents a truly unique opportunity to dramatically increase net operating income through interior and common area improvements,” said Vice Chairman Cunningham. “Additionally, Downtown Scottsdale is substantially built out with minimal sites available for future multifamily development.”
Multifamily remains one of the healthiest product types in metro Phoenix’s commercial real estate market. In fact, year to date, CBRE’s Phoenix Multifamily Institutional Properties team has already completed 17 transactions totaling 5,576 units and $723.76 million in consideration. Tyler Anderson, vice chairman and co-team lead, says he expects metropolitan Phoenix’s multifamily sector to continue to see high investor activity.
“Multifamily communities in Phoenix continue to benefit from strong fundamentals. Overall market vacancy rates remain low at 4.9 percent and outsized demand for multifamily housing in Phoenix will be driven by accelerating job and population growth in the near-term.”