Next Wave Investors, LLC (“Next Wave”) a private equity firm focused on value-add multifamily investments, has sold Park Central Luxury Townhomes, a 56-unit townhome rental community in Phoenix, Arizona to FSO Capital Partners for $33.5 million, a 31% increase over its purchase price.
Next Wave initially acquired the community for $25.5 million in December 2020, shortly after its completion. The property greatly benefits from the massive unit sizes, modern architecture, premium amenities, and the strength of the Phoenix area, according to Jordan Fisher, Principal at Next Wave.
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“Phoenix continues to be one of the country’s fastest-growing markets, with strong economic development and inbound migration contributing to this consistent growth. In fact, according to a report from Redfin, Phoenix was the most popular U.S. migration destination of 2021,” says Fisher. “Large employers moving to the area, as well as the trend of families and retirees relocating from California and other more expensive coastal areas, have all resulted in an increased need for high-quality multifamily housing. Acquiring Park Central Luxury Townhomes and strategically selling at this time has allowed us to capitalize on the organic growth and outsized demand for larger rental units in the market.”
The property, which features modern architecture and interior design, is the largest built-for-rent townhome community developed in Phoenix, notes Fisher.
David Sloan, Principal at Next Wave, adds: “The acquisition of this property was a departure from our typical strategy of acquiring older multifamily product in Western markets and implementing value-add renovations, speaking to our ability to remain nimble and pivot to seize lucrative opportunities. Our market knowledge, connections, and experience in the Phoenix area gave us the competitive advantage required to secure this top-tier, luxury asset that provides residents with units that offer more space and amenities than traditional multifamily communities in Phoenix. These same advantages helped us convey they strength and further potential of the property, alongside the team at ABI Multifamily’s Institutional Apartment Group, allowing us to generate a substantial return for our investors in just 16 months of ownership.”
Park Central Luxury Townhomes is a gated community consisting of two-story townhomes that offer a mix of spacious three bedroom, two-and-a-half-bathroom and four-bedroom, three-and-a-half-bathroom units averaging 1,840 square feet.
Each townhome includes a 400 square-foot two-car private garage and fenced-in backyard. Additional amenities include a community swimming pool, walk-in closets, large bedrooms, and in-unit washers and dryers.
The property is located seven miles north of Downtown Phoenix, six miles from Phoenix’s Biltmore area, and is situated within walking distance of a light rail station and among an abundance of local dining, grocery, and retail amenities. Significant employers in close proximity to the property include the numerous companies located in Midtown, Downtown, and the Camelback Corridor, as well as Banner Health, St. Joseph’s Hospital, U-Haul International, Wells Fargo, and Phoenix Children’s Hospital.
Park Central Luxury Townhomes is located at 917 West Glendale in Phoenix, Arizona. ABI Multifamily’s Institutional Apartment Group—Alon Shnitzer, Rue Bax, Eddie Chang, and Doug Lazovick—represented Next Wave as the seller and procured the buyer in this transaction.