JPMorgan Sells Luxury M-F Asset in Ahwatukee for $61M
- Aug 10, 2012
Chicago-based Waterton Associates L.L.C. paid $61.3 million to acquire Andante Apartments, a 576-unit luxury apartment community in Ahwatukee. The price is the second-highest commanded by a multi-family asset in metropolitan Phoenix this year, bested only by the $68.8 million paid for the San Melia Apartments about a half-mile north of Andante, CoStar reported.
CBRE Group Inc.’s Phoenix office arranged the sale, Arizona Commercial Real Estate reported. Fannie Mae provided financing. JP Morgan Real Estate, the complex’s seller, had acquired the property in 2005 for close to $59 million, according to the Phoenix Business Journal.
Built in two phases in 1999 and 2001, the property was 94 percent occupied at the time of the sale. Andante offers seven different floor plans, large living areas, nine-foot ceilings, Roman tubs and full-size washers and dryers. The complex’s amenities include three resort-style swimming pools, a clubhouse, a 24-hour fitness center, a business center and a dog park.
Marcus & Millichap Real Estate Investment Services Inc. projects that sales in the Phoenix metro apartment market will remain steady in the coming months as owners capitalize on the low interest-rate environment and sell infill properties with good cash flow and high occupancy levels.
Demand will remain intense for these assets, as yield-driven buyers re-enter the market to acquire complexes providing long-term stability. Meanwhile, investors with an established presence in the Valley will diversify their holdings and target mid-tier properties with a value-add component, according to Marcus & Millichap.
Charts courtesy of Marcus & Millichap Real Estate Investment Services Inc.