San Francisco Firm Buys Northeast Phoenix Apartments for $79 Million Article originally posted on CoStar on November 21, 2022 Hamilton Zanze Adds to Regional Portfolio With Deal at Higher-Than-Average Price The 248-unit Crestone apartment complex, built in 1992, has one-, two- and three-bedroom units. (Hamilton Zanze) Private real estate investment firm Hamilton Zanze acquired Crestone at Shadow Mountain, a 248-unit apartment complex on 15 acres in northeast Phoenix. The San Francisco-based firm paid just over $79 million for the complex at 3033 E. Thunderbird Road in the north Paradise Valley area from insurer New York Life, sales documents show. At $320,000 per unit, the sale price is well above the $260,000-per-unit average for multifamily properties in the neighborhood, according to CoStar. The deal for the 1990s-era complex also came in at about two times the $39.6 million New York Life paid for the property nearly five years ago, prior sales data shows. The garden-style Crestone at Shadow Mountain was 97% occupied when the sale closed, according to a Hamilton Zanze statement. Units in its 16 two-story buildings rent for an average of $1,781 a month, well above the $1,400-a-month average in the surrounding neighborhood, CoStar rent data shows. Roughly 1,200 multifamily units representing about 3% of existing apartment stock are under construction in North Phoenix, a CoStar Market Analytics report shows. That’s well below the average across greater Phoenix, where construction is under way that when finished will increase the region’s multifamily inventory by 8%. Investors have scoured North Phoenix for apartment properties over the past year, dropping about $1.9 billion, higher than the $1.4 billion that traded over the prior 12 months, CoStar said. Private buyers such as Rise48 Equity and Hamilton Zanze, which has acquired a dozen multifamily properties in Phoenix since 2007, have driven most of the sales activity.