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10/12/17
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Westview Group has purchased a 175-unit apartment property in Palm Springs for $20.5 mil ($117k/unit). Built in 1979, the property is located at 311 South Sunrise Way, south of Tahquitz Canyon Way between Palm Canyon Dr and Palm Springs International Airport.
The property, Marquee Apartments, features three swimming pools, barbeque areas, fitness center and laundry facility as well as an expansive greenbelt. The unit mix consists of 68 studios, 67 one-bedroom and 50 two-bedroom apartments across four buildings.
New rents at the property have risen 10% over the past year due to strong demand and adjacency to many shopping, dining and entertainment venues in downtown Palm Springs.
CBRE’s Stewart Weston, John Montakab, Paul Runkle and Eric Chen represented the buyer, a New Jersey real estate investor, and the seller, The Bascom Group, in the transaction.
“This was a great income-producing opportunity for the buyer, and with additional interior upgrades the new owner can realize an even higher cash flow going forward,” noted Weston.
According to Montakab, the Palm Springs submarket is boasting a 95% occupancy rate and, at present, there are no communities planned or under construction, supporting high occupancy levels and strong rent growth prospects in the immediate future.
Apartment fundamentals in Palm Springs have been extremely strong, according to CBRE research. Over the past three years, average annual rent growth has been 5.95%, while occupancy levels have averaged 95% during the same period, according to data from Axiometrics.
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