Wood Partners, American Realty Expand Phoenix Footprint by 350 Units
- Feb 06, 2015
Wood Partners and American Realty Advisors recently joined forces on the $57 million purchase of Pinnacle Towne Centre, a 350-unit apartment community in Phoenix, from a REIT controlled by Essex Property Trust. The partners acquired the property with plans of reinventing it by renaming it Altera Highland and, most notably, taking it from unassuming to upscale.
CBRE marketed the 17-year-old asset on behalf of the seller and, as Wood Partners and American Realty discovered, the commercial real estate services firm had no shortage of eager potential buyers.
“This was a highly competitive process,” Jane Maushardt, senior vice president of acquisitions for Wood Partners, told Commercial Property Executive.
Positioned at the center of it all at 1601 E. Highland Ave. in the coveted Camelback East neighborhood, Altera Highland has location on its side–and investors took note. For Wood Partners, it was the second time that proved the charm.
“We actually had this property under contract in late 2014 but were not able to transact, as the previous owner was unwilling to address certain due diligence items we discovered,” Maushardt said. “This time, however, there were far more offers with more aggressive terms and pricing. We are seeing this across all of our markets as rents are increasing, driving pricing, and capital is hungry for multi-family.”
The acquisition and repositioning of well-located assets in growing institutional markets nationwide is a strategy that Wood Partners and American Realty share, and the Phoenix market fits the bill. As Maushardt noted, “The Phoenix area is experiencing strong, diversified job growth. The improving economy is driving demand as renters feel more confident moving up into higher end properties, spurring implementation of successful value-add strategies as well as new development.”
But not everyone has the same agenda. For Essex, the Altera Highland transaction marked the company’s exit from the Phoenix apartment market.