Avanti Residential has sold Dwell Apartment Homes in Scottsdale, Arizona, for $41.6 million to Chicago-based 29th Street Capital. The sale of the 193-unit community will further Avanti’s initiative to reallocate its 9,000-unit apartment portfolio toward newer core-plus multifamily properties.
The authentic midcentury apartments benefit from Scottsdale’s high-end employment, retail, dining, and entertainment offerings. “Avanti acquired Dwell in 2016 with the expectation that the McDowell Road corridor to the south was ideally positioned for transformational improvements,” says Christian Garner, president of Avanti Residential.
“We are very pleased with the performance of this investment to date, especially given the impressive rental rate growth in the greater Phoenix area over the past few years.”
Dwell was built in two phases in 1963 and 1975. With a mix of studio, one-, and two-bedroom apartments and a colorful retro appeal, the complex features three swimming pools, a fitness facility and a clubhouse, and a courtyard with a barbecue area. The new owner has plans for interior upgrades to 78% of the apartments to further the position the property as an attractive option amid affordability gap concerns in Scottsdale’s new apartment inventory.
“Transacting in the current market environment is no small challenge,” adds Garner. “Both sides saw this as a win-win proposition given the yields we have achieved thus far and the value-add opportunity that remains ahead.”
Steve Gebing and Cliff David with Institutional Property Advisors represented Avanti in the transaction, while the buyer represented itself. Avanti recently recapitalized its Sunset Peak community in the Denver metro where a $5.3 million renovation is planned.