Dwell Apartment Homes in Scottsdale Sell for $41.6M

Article originally posted on AZ Big Media on February 15, 2023

Avanti Residential has sold the vibrant 193-unit Dwell Apartment Homes for $41.6 million to Chicago-based 29th Street Capital. The sale allows Avanti to realize its investment objective for the property and continue to reallocate the firm’s 9,000-unit apartment portfolio toward newer core-plus properties nationwide.

The authentic mid-century project is located near the intersection of Scottsdale and McDowell roads and benefits 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,” said 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.”

The transaction is accretive to the new owner as well, with 78% of the apartments poised to benefit from planned interior upgrades that will further position the property as an attractive option amid a challenging affordability gap in Scottsdale’s new apartment inventory.

“Transacting in the current market environment is no small challenge,” added 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.

Dwell Apartment Homes 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 clubhouse, and courtyard with a barbeque area.

Denver-based Avanti Residential most recently recapitalized its Sunset Peak apartment community in the Denver area, where Avanti plans a $5.3 million renovation. The firm continues to acquire select core-plus and value-add apartments on behalf of its institutional and private capital partners.

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