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1/27/21
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The fee and leasehold interest in an undeveloped four-parcel portfolio totaling approximately 33 acres in Phoenix and Scottsdale, AZ was acquired by an affiliate of ZOM Living, one of the nation’s largest developers of multifamily housing, for $82 mil. The portfolio was sold through an auction in the U.S bankruptcy court.
ZOM Living plans to use the land for development of thousands of new apartment units over the coming years. The properties were all either fully or partially entitled for high-density multifamily and/or commercial uses.
ZOM living, a Florida-based firm, intends to build up to 1,600 luxury units as part of a first phase of development spread across five rental communities located in North Phoenix, Scottsdale, and the Biltmore District, resulting in a combined investment exceeding $500 mil. The acquisition marks ZOM’s first entry into the Phoenix market.
The four parcels in the portfolio sale consisted of:
• Downtown Scottsdale: ±3.74 acres located at N/NEC Scottsdale Rd and Camelback Rd. Fully entitled.
• Biltmore Area: ±2.92 acres located at SWC 24th St and Highland Ave. Partially entitled.
• Desert Ridge: ±20 acres located at NWC Loop 101 & 56th St. Partially entitled.
• North Phoenix: ±5.92 acres located at NEC Loop 101 & 56th St. Partially entitled.
Cushman & Wakefield’s Don Arones led the sale and provided brokerage representation on behalf of the seller, the Bankruptcy Trustee, collaborating with Beth Jo Zeitzer and Justin Cirell of R.O.I. Properties who acted as the real estate advisor to the trustee.
“This was an incredible opportunity to acquire four of the highest profile development properties in Phoenix and Scottsdale,” said Arones. “Each site offered a unique opportunity to develop near highly populated areas surrounded by prime employment corridors and abundant retail, restaurant and entertainment options.”
According to Cushman & Wakefield’s latest Q3 2020 Multifamily Report, overall vacancy in the Phoenix Metro market was a healthy 4.6%, down from 4.9% in Q3 2019. The first three quarters of 2020 had absorbed almost 5,800 units, a 57% increase of the average annual absorption (3,660 units) since 2000.
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