Wiedner Investment Services Spends $60M on Upscale Phoenix Apartments
- Apr 09, 2012
By Nicholas Ziegler, News Editor
Following the improving multi-family trends in Phoenix and the country at large, CBRE’s Capital Markets team has coordinated a $59.5 million investment in Alta Phoenix Lofts, a 332-unit high-rise apartment community in the city’s Downtown area. Weidner Investment Services of Kirkland, Wash., purchased the asset that is located at 600 N. Fourth St.
Tyler Andersen, a vice chairman with CBRE, called the apartment “a core asset in a strong central Phoenix submarket” that “demonstrates the overall strength of the Phoenix market.” He added that the area has “seen substantial public and private infrastructure investment during the past five years.”
Built in 2009, Alta Phoenix is an upscale urban loft-style community that features 327,954 square feet of rentable space across its 332 units. In addition to modern amenities – a 24-hour fitness center, a yoga studio and a meditation lounge, for example – the development also features live-and-work units and ground-level retail.
A fourth-quarter 2011 report by Marcus & Millichap Real Estate Services Inc. showed that the year-over-year drop in vacancy rates for the Phoenix apartment market far outpaced the national average, falling 2.4 percent – rather than the nationwide 1.4 percent – but still closing the year at a high level, at 7.3 percent.
The firm went on to note that 2012 will likely see significant investor interest in the city’s multi-family assets “as private buyers remain bullish on value-add infill properties.” Plummeting home values – more than 66 percent of the city’s home mortgages are underwater – will see a glut of strategic defaults, further strengthening the multi-family rental markets. Landlords will have the upper hand, allowing them to reduce concessions and push rental prices higher.
At the time of sale, Alta Phoenix was 93 percent occupied.