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NEWS
APARTMENTS
THE SUNDAY SANTAN SUN NEWS | JANUARY 16, 2022
from page 1
Apartments at 125 S. Alma School Road for $125.3 million – nearly three times the 2015 sale price of $46.2 million. That sale by the Phoenix-based Conam Group of Companies to Decron Properties of Los Angeles worked out to $186,250 for each of the 324 apartments spread out across 28 two-story buildings. • The September sale to Windemere Investments of Texas of the Soleil Apartments at 725 No. Dobson Road for $63 million – less than two years after the seller, 3rd Avenue Investments of Phoenix, bought the 188-apartments-turned-condo complex for $40 million. That represented a per-unit price of $335,106. • California-based Davlyn Investments’ Dec. 15 acquisition of the 280-unit Broadstone Trevio on S. Ellis Street for $114.4 million – more than twice the $47.5 million price that seller TruAmerica Multifamily paid for the 16-year-old complex in 2015. • The purchase by Scottsdale-based Private Portfolio Group and subsidiary Pillar Communities of the 116-townhouse complex called Villas at Chandler Heights last month for $55.1 million only three years after The Carte Group, the seller, bought it for half that price. • Last month’s sale of the Marquis at Chandler complex at 2200 W. Frye Road by Pacific Coast Capital Partners to Texas-based CWS Capital Partners for $150 million – 11 months after Pacific bought it for $95 million. That transaction represented a price of $441,176 for each of the Marquis complex’s 340 apartments that are spread across nine four-story buildings. Both Decron Properties and CWS Capital Partners are real estate investment management companies with similar financial objectives. CWS says on its website, “We seek investment opportunities with the primary objective of strong growth potential while maintaining preservation of capital.”
The Marquis at Chandler apartment complex on Frye Road sold last month for $150 million – 11 months after the seller paid $95 million for it. (Special to SanTan Sun News)
Stressing that it is primarily a builder, Decron Properties states its development philosophy “blends land use, entitlement, and construction expertise with a vision that creates lasting value in real estate assets” as long-term investors in real estate. Chandler by far is not the only East Valley community where mega-deals involving apartment complexes have occurred in the last 12 months. Just across the I-10 from Chandler, Sares-Regis Group of Newport Beach, California, last month bought the 312unit Arboretum at South Mountain complex on Chandler Boeuilvard at I-10 for $118.3 million – far more than the $45.5 million it sold for in May 2016. Earlier last fall, Tides Equities of California sold a complex it bought four years ago for $47.2 million to another investment group for $137 million. The following day, Tides Equities bought two Mesa complexes for a total $217.5 million. Such transactions reflect what Bloomberg called a shift by real estate investors from offices, hotels and malls, which it said “fared poorly in the pandemic.” “The influx of money has pushed prices higher and forced private equity firms to behave like the aggressive
homebuyers in the frenzied housing market,” Bloomberg said. “Some investors are frustrated by current prices for apartment buildings. But many are raising their bids, waiving inspections and promising to close fast, with rising rents driving a flurry of deals.” It quoted one investment activist as stating: “That’s what happens in a white-hot market. Some of them will sharpen the pencil on the next one and get a little more aggressive because they need to deploy that capital.” According to a number of analysts, the interest in apartment complexes also is being fueled by soaring home prices that have especially impacted first-time homebuyers and aging baby boomers anxious to downsize. Large investors also aren’t just looking at apartment complexes for the long-term benefit of a steady revenue stream that rent delivers. The Cromford Report, which closely watches the Phoenix Metro housing market, noted that large investors also are buying single-family homes in bulk – and not turning them over for resale. Instead, the Cromford Report noted, “investors are extremely interested in purchasing single-family homes in Phoenix. The receipts from rents are rising faster than anywhere else in the country. “Rents are rising because there are more people wanting to rent than there are rental properties. Many families are starting to see single-family rentals as preferable to apartments or condo-style rentals. This effect is probably supported by living conditions during a pandemic. “While this continues, we can expect investor demand to remain robust, which in turn prevents the market cooling down as it would if ordinary home buyers were the only source of demand.” Manage Case, a company that manages apartment complexes, echoed that lure of rent for investors. “There is little to support any prediction other than rising rent prices,” it said. “Those hoping for a lull in the rising price trend will likely be disappointed.”
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Deadline Editorial and Advertising Noon, January 25 for the Sunday, January 30 issue
CHICKEN
from page 3
they were eating all the bugs that the scorpions like.” And as anyone who has had farm fresh eggs will tell you, the taste is much better. “Obviously the fresher you can get any of your food, the better it’s going to be,” Ellingson said. Ellingson said she sold her eight chickens on a group website she belonged to. Her coop is still there but empty. A residential street is right next to her backyard and anyone can see into it through the chain-link fence. That’s how a city inspector discovered she had chickens and had to send her a citation. Ellingson said the inspector told her no one filed a complaint. She said if they had a block fence, or lived between two other houses,
chances are she would still have her chickens today. Her neighbors continued to support her owning chickens, she said. They would even help corral them when one would escape the back yard, which happened a couple of times before they clipped their wings. “People would stop by and look at them through the fence,” Ellingson said. “They’d ask how the chickens are doing. Nobody complained about it.” Rick Huemann, chair of the city’s Planning and Zoning Commission, says it’s too soon to know which way it might go. “It depends on what staff recommends,” he said. He said while Ellingson’s neighbors may have no issue with her raising hens, the neighbors two streets down may have a problem with one of their neighbors doing the same, especially if they
have a rooster, which is much nosier. Heumann said you have to set standards for everyone. The last time this came up was in 2013 and a proposal to allow a limited number of chickens in residential backyards was defeated on a 4-3 vote by council. Some of the 75 people who attended because of the topic were concerned about the smell and noise they say chickens generate. Heumann said this issue will only affect older, traditional neighborhoods, because most homeowner associations have rules against wildlife. Ellingson said she spoke with the mayor and a couple of councilmembers and is hopeful they might change the zoning. “A couple of the councilmembers came up and expressed their support, but whether or not that actually plays out in a vote, you know, who knows.”
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