Knightvest Capital Pays $62.5 Million for Apartments in South Tempe, Arizona

Article originally posted on CoStar on August 11, 2020

Signature Place in Tempe, Arizona, sold for more than $207,600 per unit. (CoStar)

Multifamily investor Knightvest Capital bought Signature Place apartment complex in south Tempe, Arizona, for $62.5 million, underscoring the continued strong investor demand for multifamily rental housing in greater Phoenix during the coronavirus pandemic.

Multifamily investor Western Wealth Capital sold the 300-unit community at 600 W. Grove Parkway for $207,641 per unit, a 56% increase over the $133,000 a unit it paid in 2016 as part of a series of investments in Phoenix multifamily properties that year, according to CoStar sales data.

The apartments built in 1996 include two swimming pools, a fitness center, lighted tennis courts and outdoor grilling areas. Signature Place was listed for sale before the pandemic and generated significant interest, but completing the deal during the pandemic is “a testament to the resiliency of both the buyer and seller” as well as the sound market and economic conditions in Phoenix which make Tempe a hot target for multifamily investments, Matt Pesch of CBRE Group, which represented Western Wealth, said in a statement.

Phoenix apartments recorded a near-record-low vacancy rate of 3.9% in the first quarter leading into the pandemic, and the rate increased to only 4.5% at the end of the second quarter, according to CBRE Econometric Advisors. Phoenix had the strongest one-year total return for multifamily investments out of the 29 largest U.S. metropolitan areas in the second quarter, CBRE said.

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