Colliers International in Greater Phoenix recently completed the sale of the 672-unit Autumn Ridge Apartments, a Class B complex in North Phoenix.
Houston-based Domain Acquisitions LLC in partnership with BH Equities LLC of Des Moines purchased the complex, located at 1944 W. Thunderbird Road, from Summit Autumn Ridge LLC of Los Angeles. Colliers Cooke Team, led by Cindy Cooke, senior executive vice president, and Brad Cooke, vice president, with Colliers International brokered the transaction.
Autumn Ridge Apartments is a 672-unit garden-style community with 73 buildings on 31.04 acres. An infill location with limited land available for new construction, it is adjacent to Cave Creek Golf Course and a large park with lighted walking paths. It is strategically located between the robust Deer Valley employment center and the established North I-17 employment corridor, the second largest employment area in Phoenix.
“The market is just starting the recovery in North Phoenix and we are excited to see the recent momentum in occupancy and rents. Autumn Ridge is a great asset to take advantage of in this market recovery,” said Cindy Cooke.
This purchase marks Domain Acquisitions’ re-entry into the Metro Phoenix market since the organization sold its portfolio here in 2006. “We have been patiently watching the Arizona market for many years, and the state’s economy continues to gain impressive momentum. We are excited to be back as investors in Arizona,” said Domain’s CEO, J.D. Golden.
“With Autumn Ridge, we recognized the solid location, the advantage and financial benefit of a ‘value-add’ approach, and the significant value to replacement cost—all underscored by the improving economic fundamentals in Arizona,” said Jay O’Connor, Domain’s Executive Vice President. Approximately $5 million will be spent in renovating and repositioning the property.
Laura Cathlina and Andy Hill of Berkadia Commercial Mortgage LLC originated $30.9 million in financing for the acquisition and renovation. BH Management Services will provide property management and construction services for the partnership.
The unit mix contained in one- and two-story casitas is 368 one bed/one bath at 680 square feet; 128 two beds/two baths at 816 square feet; 136 two beds/two baths at 910 square feet; 24 three beds/two baths at 1,194 square feet; and 16 three beds/two baths at 1,444 square feet.
“Autumn Ridge has excellent floor plans with washer-dryers in the majority of the units—it is well positioned for the buyer to update the interiors,” said Brad Cooke.