Investors Take Advantage of Phoenix’s Surging Multifamily Fundamentals

Phoenix led all U.S. metros in rent growth in second quarter 2021 with a 15.3 percent year-over-year increase, according to CBRE research. This gives assets a leg up with investors, particularly as of late.  

Two of the recent sales were 364-unit Ascend at Kierland and 360-unit Elite North Scottsdale, which sold to The Ezralow Company for $312.5 million. The two multifamily communities are surrounded on three sides by the Westin Kierland Resort golf course.

CBRE’s Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch represented the seller, a joint venture of Bascom Arizona Ventures and Pacific Life Insurance Company.

 “The sellers invested significant capital to elevate the communities with new and refreshed amenities as well as renovating approximately 75 percent of the unit interiors,” said Gunter. “The unparalleled location on the golf course combined with the communities’ luxury amenities drives strong perpetual demand.”

Ascend at Kierland and Elite North Scottsdale were built in 1996 and 1998 respectively. “We pride ourselves on the level of detail we committed to repositioning these communities and we are excited for the successful outcome of this investment,” said Mark Brotherton, senior portfolio manager for Bascom Arizona Ventures. “We continue to look for new opportunities in Phoenix and take advantage of the region’s surging multifamily fundamentals.”