Flats at Granite Reef Sells to Girard Flats

The metro Phoenix area continues to experience pent-up multifamily investment demand from both local and out-of-state capital due to robust employment growth, net in-migration and strong market fundamentals, according to CBRE research. One recent acquisition exemplifies that trend.

A 135-unit multifamily property, The Flats at Granite Reef located in Scottsdale, sold to Girard Flats LLC for $17.5 million. The buyer was a private partnership completing a 1031-exchange. The partnership acquired the property by assuming the first and second loans with a combined amount of approximately $10.5 million.

Located at 980 North Granite Reef Rd., the property features one- and two-bedroom apartments. Common amenities include a pool, game room, laundry facilities, courtyard and clubhouse.

Brian Smuckler, Jeff Seaman, Derek Smigiel and Bryson Fricke of CBRE represented the California-based seller and the buyer.

“The Scottsdale submarket has extremely high barriers to entry especially for low-density single-story assets,” said Seaman. “The buyer is planning an extensive rehab program which includes updating the interiors, improving the common area amenities, and repositioning and rebranding the community.”