2 Chandler complexes change hands in big deals - SanTan Sun News SanTan Sun News

2 Chandler complexes change hands in big deals

July 6th, 2022 SanTan Sun News
2 Chandler complexes change hands in big deals

By SanTan Sun News Staff

Two Chandler complexes changed hands last month at prices well above what the sellers paid for them only a few years ago, continuing a trend that has dominated the East Valley multifamily sector for the past year.

Investment company JP Morgan bought the 240-unit San Palmas complex on N. Mission Park Boulevard, near the Loop 101 Price Road Freeway and Ray Road, for $104.3 million, according to the Valley real estate tracker vizzda.com – more than twice the $43.2 million paid by Continental Realty Group of Colorado in 2018.

Built in 1998 on just under 14 acres, the complex comprises 30 two-story buildings with 90 one-bedroom units, 118 two-bedroom apartments and 32 with three bedrooms, according to vizzda.

Also in June, the 180-unit Santa Ridge Condominiums at Gilbert and Queen Creek roads was sold by Samir Holdings of Phoenix to Kodiak Real Estate Group of Golden, Colorado, for $43 million, vizzda reported. That was almost twice the $27 million the seller paid for it just last year.

The complex of 24 buildings on 16 acres started under construction in 2006 and gradually was finished in 2015. The sale equaled just under $395,000 per unit, vizzda said.

Founded in 2019, Kodiak says it has changed its focus from building sing-residential communities to acquiring multifamily properties in Colorado, Nebraska and Arizona. Records show it has sold three small properties in the Valley in the past year and bought a smaller one.

The Chandler acquisition was its largest yet in Arizona, according to vizzda data.

Multifamily investment in the first three months of this year hit an all-time high, accounting for the strongest first quarter on record and increasing 56% year-over-year to $63 billion, according to research by CBRE.

That appears to be supporting CBRE’s earlier prediction that “the multifamily sector is set for a record-breaking 2022 amid solid fundamentals and heightened investor interest.”

“With tremendous liquidity and a growing range of debt options available, multifamily pricing will be as strong as ever,” it said.

Numerous analysts over the past six months have said that rising rents have made the multifamily sector a more attractive option for investors, particularly because many people are finding themselves priced out of the market for buying a house.

In February, Forbes said, despite all of the uncertainty of the pandemic, the multifamily real estate sector is still thriving and still a great place to deploy capital if you are looking for stable returns and a hedge against inflation.

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