Canadian Investor, Armed With New War Chest, Snaps Up Downtown Phoenix Apartments
Pure Multi-Family has acquired the 230-unit, recently completed Fillmore Apartments in Downtown Phoenix for $59M, or about $256,500/unit. Finished by developer Wood Partners in 2016, Fillmore is a five story, mid-rise community on about four acres.
The property includes 141 one-bedroom units, 84 two-bedroom units and five three-bedroom units with an average size of 934 SF.
Pure Multi-Family, a REIT based in Vancouver, British Columbia, funded the purchase with cash on hand and debt from a new credit facility that totals $50M, but with an increased borrowing capacity of up to $100M.
The property offered the buyer a number of strategic advantages, according to ABI Multifamily Senior Managing Director Rue Bax, who represented both the buyer and seller.
"Pure Multi-Family was seeking an institutional-grade property in the Sun Belt, Arizona or Texas, and saw Downtown Phoenix as a strong-performing submarket, especially in light of the significant population and job growth in the Phoenix area since 2010."
Another consideration is that the property is a few blocks west of Downtown Phoenix's jobs corridor along Central Avenue, Bax said. The corridor is seeing an influx of employers, most recently that Quicken Loans will move more than 1,100 employees to the One North Central Building.
With the acquisition of Fillmore Apartments, Pure Multi-Family’s portfolio consists of 22 multifamily properties totaling 7,085 units.
