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4/08/16
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In a recent multifamily sales comp from Glendale, AZ, a Phoenix-based investor paid $15.35 mil for Sonoma Terrace, a 260-unit ($59k/unit), Class B property. Built in 1979, the property is located at 5220 W. Northern Ave.
Sonoma Terrace contains 185.5k sf in 19 buildings on 17.5 acres. The two-story community offers a unit mix of 40 studio, 152 one-bedroom and 68 two-bedroom apartments ranging from 460 sf to 1k sf. Occupancy at time of sale was 95 percent.
Common area amenities include two swimming pools and spas, two landlord-owned laundry facilities, clubhouse with billiards, outdoor barbeques, 260 covered parking spaces and 155 additional open parking spaces. Apartments include gourmet kitchens with all appliances, spacious interiors, ceiling fans, and private patios or balconies. Select units feature washers, dryers and walk-in closets.
Sonoma Terrace is located in a quiet neighborhood with the nine-hole Glen Lakes Golf Course and Manistee Ranch Park across the street. Nearby educational facilities include elementary, middle and high schools; Glendale Community College and Carrington College. There is an abundance of shopping in the area, and the active downtown district of Glendale is one mile to the south.
Trevor Koskovich, Bill Hahn and Jeff Sherman with Colliers’ Phoenix office represented the buyer, Phoenix-based 3rd Ave Investments, and the seller, Mentor Properties Inc, of Scottsdale. Financing was arranged through Walker & Dunlop LLC, with a loan to purchase price ratio of approximately 75 percent. This marks the firm’s seventh multifamily acquisition in metro Phoenix since early 2015.
“This transaction is indicative of a strengthening multifamily market in the West Valley,” said Koskovich. “In 2015, West Valley vacancies ticked lower approximately 5.5 percent, while rents increased by 5 percent to 6 percent. At the same time, investment activity and prices have been on the rise, a trend we expect to continue through 2016.”
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