Phoenix area – One man’s trash is another man’s treasure appears to be the theme of the first quarter 2013 multi-family market in the Valley. As one publicly-traded REIT (real estate investment trust) is exiting the Phoenix apartment investment market by selling more than 5,000 units in the Valley, a joint venture of private investors is headed toward buying 5,000 apartments in the Phoenix area. This week’s BREW is headlined by three apartment projects totaling 1,047 units that are being sold to Bascom Arizona Ventures LLC for a combined $125.232 million (see specifics on each sale in story below). And last week’s BREW reported eight Valley multi-family communities totaling 2,321 units changing hands in deals totaling $255.649 million ($110,146 per unit average). Those sales closed over just a six-day period from February 14 to February 19. While the apartment sales activity in the Phoenix area has been fairly frenetic over the past year, that pace is not likely to continue. “There is a lot less product on the market now than there was 12 months ago,” says Todd Braun, a Valley multi-family specialist and principal at Lee & Associates Arizona Inc. in Phoenix. Asher Gunter, who specializes in selling apartment assets at CBRE in Phoenix, echoed Braun’s sentiments “I’m not sure that there are that many more units to buy,” says Gunther of the supply of multi-family properties that are for sale in the Valley. Continue reading
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