New York City-based Rivendell Global Real Estate added an Ahwatukee luxury apartment complex to its portfolio for the second time in the past two weeks when it purchased San Paulo for $32.5 million.
The high-end class A property, located at 14625 S. Mountain Pkwy., features 208 units and one-, two- and three-bedroom floor plans.
The garden-style community was built in 1996 and is part of the Mountain Park Ranch master-planned community that includes access to tennis courts, swimming pools and parks.
Rivendell previously purchased Santa Rosa, a 20-year-old class A property that is part of the Lakewood Master Plan, for $19.8 million.
It is the company’s fifth property in Phoenix.
Existing luxury apartment properties in Ahwatukee are attractive to buyers because there is no space left to build out in the community and there is a high barrier of entry, CBRE Vice Chairman Tyler Anderson said.
CBRE represented the seller, Seattle’s PrivatePortfolio Group, in the deal.
“This is a solid community that is positioned well for someone to (undertake renovations) and take a value add approach to the community,” said Anderson.
Rivendell identified Phoenix – and Ahwatukee specifically – as desirable markets to add to its portfolio, Rivendell global real estate managing director Yonatan Linenberg said when speaking about the Santa Rosa purchase.
The company found several aspects of the area attractive, including the growth along Chandler Boulevard and the Loop 202 expansion.
“Located in the preferred Ahwatukee submarket, San Paulo presents a tremendous investment opportunity,” CBRE Vice Chairman Sean Cunningham said in a press release.
“The community is surrounded by numerous established master-planned communities with strong demographics, access to top-rated schools and proximity to some of the East Valley’s largest employers,” he added.
Ahwatukee’s strong employment and income fundamentals and the increasing demand for class A apartment rentals throughout the Valley also made San Paulo attractive to investors.
“There is such (positive) population growth and employment growth in the Valley that there is a solid demand for class A (apartments),” said Anderson.