Suburban Chicago Firm Is Still Sweet on Phoenix Apartments
A suburban Chicago investment shop is doubling down in the suburban Phoenix rental market.
Inland Real Estate Group, of Oak Brook, Illinois, has agreed to pay $110 million for a three property, 457-unit portfolio.
The properties, in Litchfield Park, Surprise and Tolleson, Arizona, were all built between 2018 and 2019 and are now 95% leased, according to CoStar data.
The trio of properties, acquired from local developer Christopher Todd Properties, are Inland’s latest investment in the Sun City region. The firm acquired an eight-property, $74 million portfolio in 2018, and then picked up a $55 million Queen Creek property in November.
The properties just acquired are the 167-unit Communities on Camelback in Litchfield Park; the 136-unit Greenway in Surprise; and the 154-unit Country Place in Tolleson. They are reasonably swank with fitness centers, swimming pools and lounges — the usual Class A amenities.
Phoenix, with its impressive job growth and population influx, has a big demand for apartments. Rent growth is averaging 5.6% annually, well over the 2.4% national average. At 6.6%, vacancy is just about the national average despite a wave of new construction.
Investors from all over the United States have been kicking the tires in Phoenix-area apartments in recent years.
Article originally posted on CoStar on March 16, 2020
About Tower Capital:
Tower Capital was founded to enable owners of commercial real estate to achieve their investment goals with the least amount of time, energy, and cost, while creating surety of execution and peace of mind.
Established in 2015 and headquartered in Phoenix, Arizona, Tower Capital provides customized structured financing to investors throughout the United States. We specialize in debt and equity placement ranging from $2 Million to $100 Million and have financed over $1 billion for our clients since inception. We focus on independent financial advising with an entrepreneurial mindset, market vigilance and personalized attention to every client.