Scottsdale, Ariz.—Passco Companies LLC has acquired a 218-unit multifamily property in Scottsdale for $52.52 million, which it is naming “Luxe Scottsdale.” The property was recently developed by the seller, Atlanta-based Wood Partners.
Luxe Scottsdale is located 8444 E. Indian School Road in Scottsdale, a near-in and affluent suburb of Phoenix. Completed only this year, the property features a pool with spa, a two-story clubhouse with walk-out deck overlooking the pool, 24-hour fitness center with touch screen equipment, a cyber café for events and cooking demonstrations, and a dog washing station.
The units themselves include 10-foot ceilings, kitchens with granite countertops and tile backsplashes, and stainless steel appliances. All of the residences features also feature vinyl plank wood flooring and open patios or balconies.
“Luxe Scottsdale’s location in the Downtown Scottsdale submarket provides a long-term competitive advantage, high barriers to entry for future multifamily product, and immediate access to Downtown Scottsdale,” said Gary Goodman, senior vice president, acquisitions for Passco. He added that the property, which is still in its initial lease-up, has rents which are lower than its competition.
The property is an ICC 700 National Green Building Standard Bronze certified community. Luxe Scottsdale will be managed by Allison-Shelton.
A 218 unit gated, garden-style Class A apartment built in 2015.
Investment Type: Multi-Family
First year projected lease payment as percentage of invested capital
(Cash on Cash): 5%
Fully Syndicated Value: $58,979,000
Equity Remaining: Fully Funded
Loan Amount: $32,804,000
Hold Period: 7-10 year
Total Equity/Beneficial Interests: $26,175,000
Occupancy: 94.81% for year 1
Minimum purchase 1031: $100,000; Accredited
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