Colliers International in Greater Phoenix negotiated the sale of Villas at Montebella, a 100-unit apartment asset at 10860 N. 85th Avenue in Peoria, Arizona, for $4.6 million or $46,000 per unit.
Executive Vice Presidents Bill Hahn, Jeff Sherman and Trevor Koskovich with Colliers represented both the seller and buyer. The seller was WE Villas at Montebella, LLLP (Raffaelle Sabatino, principal) of Saint Leonard, Quebec, Canada.
The buyer was Villas at Montebella, LLC, a company formed by Shon Brown, a private investor in Peoria, Arizona. This is Brown’s third acquisition in metropolitan Phoenix.
“Villas at Montebella provided an opportunity for the buyer to expand his portfolio with a value-add asset,” Sherman said. “To capitalize on a rising rental market, the buyer plans moderate upgrades. Rental rates for Villas at Montebella are currently below market; and the submarket’s high occupancy rates and the lack of nearby multifamily in the pipeline signals an increase in near-term asking rents.” Occupancy for Villas at Montebella at time of sale was 96 percent.
According to Colliers’ market research, the multifamily market is poised to have another year of strong performance, as supply and demand will remain very close to equilibrium. Investors are responding to the strong operating conditions by increasing acquisition activity. In 2015, sales velocity accelerated and prices increased by more than 10 percent.
Built in 1975, Villas at Montebella is a 72,000-square-foot community, with eight two-story buildings on approximately 4.09 acres. The unit mix consists of 20 one-bedroom and 80 two-bedroom apartments ranging in size from 480 square feet to 780 square feet. Common amenities include a swimming pool, laundry facilities, playground, outdoor barbeques, 60 covered parking spaces and 191 uncovered parking spaces.
The property is located just off Grand Avenue (U.S. Route 60) and one block north of Peoria Avenue. The Loop 101 freeway one mile to the west provides easy access to the Phoenix metro area. Employment opportunities are concentrated along Grand Avenue and the Loop 101.
Villas at Montebella is in proximity to several shopping centers, educational institutions and entertainment venues. Glendale Community College, Thunderbird School of Global Management and Arizona State University West campuses are within easy driving distance. The P83 Entertainment District, which hosts the San Diego Padres and Seattle Mariners spring training and other athletic and special events, is four miles to the north.