Industrial real estate investor pivots with Phoenix apartment acquisition

Article originally posted on Phoenix Business Journal on October 3, 2024

Long known for industrial investments in metro Phoenix, Denver-based Sagard Real Estate is making its initial foray into the Phoenix multifamily sector with the purchase of a 209-unit apartment community in Tempe.

Closing on Sept. 30, Sagard Real Estate paid $77.33 million in cash to Nasim Sikder, who bought the property from Goldman Sachs for $66.25 million in August 2019, according to Tempe-based Vizzda LLC.

“We’ve shifted and expanded our multifamily acquisition efforts across the country,” said John Bezouska, vice president of acquisitions for Sagard. “This is our debut into the Phoenix market.”

Called Trovita Rio Apartments, the community was built on 3.2 acres at 701 W. Rio Salado Parkway, in 2018, according to Vizzda. The property is currently about 93% occupied, Bezouska said. Rental rates range from $1,479 for a studio apartment to $2,424 for a 2-bedroom unit, according to Trovita’s web site.

While the name and rental rates will remain the same for now, plans call for renovations of common areas and amenities, as well as units on an individual basis, Bezouska said.

The property was purchased off market, with Steve Nikoluzakis & David Fogler of Cushman and Wakefield negotiating the transaction.

“They brought us to the deal,” Bezouska said.

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