Chicago Firm Snaps Up Complex Amid High Multifamily Demand in Phoenix’s Affluent Scottsdale Suburb

Article originally posted on CoStar on February 17, 2023

Avanti Residential Sells Dwell Apartments for Nearly $42 Million

The Dwell apartment complex in south Scottsdale, Arizona, was built in two phases in the 1960s and 1970s. (Tim Nelson/CoStar)
The Dwell apartment complex in south Scottsdale, Arizona, was built in two phases in the 1960s and 1970s. (Tim Nelson/CoStar)

A Chicago developer bought an apartment complex in the Phoenix region of Scottsdale as multifamily investors keep loading up on properties in the wealthy suburb.

Avanti Residential, based in Denver, sold the 193-unit Dwell Apartment Homes at 1923 N. 70th St. in south Scottsdale for $41.6 million, or $215,545 per unit, the seller said in a statement.

The buyer, 29th Street Capital, has been active across greater Phoenix over the past year, buying several apartment complexes along with land for a planned single-family rental project in Apache Junction.

Avanti paid just under $21 million, or $108,000 per unit, in 2016 to buy the property south of Old Town Scottsdale, an affluent area with a large share of luxury rentals, retail, dining and entertainment that attracts upscale professionals, according to a CoStar analytics report.

“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,” Avanti Residential President Christian Garner said in the statement.

Avanti sold the project as Phoenix’s average asking rents recorded their first year-over-year decline since mid-2010, when the market was recovering from the global recession, according to CoStar Market Analytics.

Investors have stayed committed to Scottsdale even as apartment sales have slowed across most parts of the Valley of the Sun in recent months amid higher interest rates and borrowing costs, according to CoStar.

Dwell, built in two phases in 1963 and 1975, has a mix of studio, one- and two-bedroom apartments. The complex features three swimming pools, a fitness facility and clubhouse.

For the Record

Steve Gebing and Cliff David with Marcus & Millichap’s Institutional Property Advisors represented Avanti in the transaction. The buyer represented itself.

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