Passco Companies, LLC has acquired a premier core 218-unit multifamily community for $52.525 million in Scottsdale, Arizona, which it is naming “Luxe Scottsdale.” The community, built with an urban design, condominium finishes, and state-of-the art community amenities, was recently developed by the seller, Atlanta-based Wood Partners, according to Gary Goodman, Senior Vice President, Acquisitions for Passco Companies.
“Luxe Scottsdale’s location in the coveted Downtown Scottsdale submarket provides a long-term competitive advantage, high barriers to entry for future multifamily product, and immediate access to Downtown Scottsdale’s upscale retail, vibrant restaurants, nightlife and an expanding hub of dynamic employment,” explains Goodman. “This new community, which is still in its initial lease-up, has rents which are lower than its competition, making this an extremely smart acquisition for Passco Companies.”
Wood Partners developed the asset as its first of four developments in Arizona.
“This property is an example of Wood Partners’ thoughtful and integrated business model, through which we are consistently able to produce unique and beautiful assets,” said Todd Taylor, Arizona and Nevada Development Director for Wood Partners, which also developed 3rd and Thomas, Alta Tempe, and Alta Steelyard Lofts in this growing region. “Combining style, luxury and convenience, the Luxe Scottsdale community, which was formerly called Alta Scottsdale, delivers gorgeous, modern units and amenities that clearly match the desires of our target market.”
Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch of CBRE’s Phoenix office represented Wood Partners in the transaction.
“Multifamily fundamentals remain strong as we close out the year, and we expect more of the same heading into 2016,” said Cunningham. “Numerous third-party forecasts have pegged Phoenix as a leader among major western markets in job growth and population growth through 2018. The community’s strategic location on Indian School Road, which serves as the gateway to Downtown Scottsdale, positions Luxe Scottsdale to benefit from demand drivers generated through significant employment announcements in that submarket.”
Downtown Scottsdale is experiencing unprecedented employment growth from dynamic healthcare, technology and financial services companies, according to Cunningham. Proximity to advanced education, abundant amenities and excellent demographics continue to attract top companies to Scottsdale.
Notable companies located in Downtown Scottsdale include Yelp, Zenefits, Scottsdale Healthcare, Weebly, Groupon, CA Technologies, McKesson, Softwench Solutions, Yodle, Theranos and Webfilings.
Passco Companies’ Gary Goodman notes that Luxe Scottsdale’s close proximity to multiple employment centers are attractive components for continued renter demand for the property.
“The vibrant downtown continues to attract new eateries and shops that Millennials want to incorporate into their live/work/play environment,” Goodman explains. “Tech and healthcare companies seeking these young, educated employees are filling the available office space to the point that another 1.5 million square feet of office product is now actively in development. This of course translates into thousands of well-paid young professionals seeking Class A multifamily, which we can deliver at Luxe Scottsdale.”
Luxe Scottsdale is located 8444 E. Indian School Road in Scottsdale, Arizona. Built in 2015, the property features a pool area with spa, two-story clubhouse with walk-out deck overlooking the pool, 24-hour fitness center featuring state-of-the-art touch screen equipment, cyber café bar area for events and cooking demonstrations, and a commercial grade dog washing station.
The units themselves include ten-foot ceilings, fully appointed kitchens with granite countertops and tile backsplashes, stainless steel appliances, contemporary cabinetry and deep single-basin under-mount sinks. All homes have vinyl plank wood flooring, full-size washer/dryers and open patios or balconies.
The property is an ICC 700 National Green Building Standard™ (NGBS) Bronze certified community. Luxe Scottsdale will be managed by Allison-Shelton.