ABI Multifamily, a dedicated multifamily brokerage and advisory services firm, is pleased to announce the bulk condominium sale of Scottsdale Haciendas, a condo conversion community that is located in Scottsdale, Arizona. The purchase consisted of 79 garden-style condominium and townhome units (out of an original 180 units total on the property) and transferred HOA control to the Buyer. Scottsdale Haciendas sold for $9,250,000, which reflects a price just over $117,000 per unit. The sale is the second condominium transaction brokered by ABI Multifamily in the past week, with the two sales combining for nearly $16M in transaction volume.
The Vancouver, Canada based Buyer, Reef Scottsdale LLLP, was attracted to the property’s “A” class Scottsdale location and all Two Bedroom unit mix. They will continue to operate the property as a rental community with the possible exit strategy of individual sales if the housing market continues to flourish. “Acquisition opportunities for Scottsdale apartments are few and far between. Much of the stock, like Scottsdale Haciendas, was converted to condominiums before the downturn. However, only about half of the units at Scottsdale Haciendas were sold to individual Buyers as the conversion happened relatively late in the last cycle. The limited supply of Scottsdale rentals coupled with billions of dollars currently being invested in development projects in the surrounding hubs of Old Town Scottsdale and ASU’s Tempe campus, appealed strongly to the Buyer” according to Doug Lazovick, Partner at ABI Multifamily.
The Seller, Texas based Granite Reef Properties LLC, exits the Phoenix Valley market with the sale of Scottsdale Haciendas. “The South Scottsdale rental market had really taken off recently. The average rental rate has soared up over 13% since 2013. The property has consistently had occupancy in the mid to high 90% range. These factors, combined with an improvement in the South Scottsdale condo market and recent cap compression presented the ideal circumstances for the Seller to sell his only commercial real estate asset in Phoenix” stated Eddie Chang, Partner at ABI Multifamily.
Scottsdale Haciendas is a two story condominium community located at 985 North Granite Reef Road in Scottsdale, Arizona. The property was built in 1985 as apartments, converted to condos in 2006 and sits in the McDowell Corridor of the South Scottsdale submarket. Located near the Loop 101 freeway, Old Town Scottsdale, and ASU’s Tempe campus, residents enjoy easy access to the valley’s premier employment and entertainment options. Scottsdale Haciendas is entirely comprised of Two Bedroom garden-style and townhome units. All units have been renovated with condo grade finishes and have individual HVAC systems, full size washer/dryer, garages, private patio/balcony and storage space. Select units have private backyards. Common area amenities include two swimming pools, spa, barbeque grills and ample parking.
The Phoenix based ABI Multifamily brokerage team of Doug Lazovick, Eddie Chang, John Kobierowski, Alon Shnitzer and Rue Bax represented both the seller and buyer in this transaction.