Dealmaker: IPA Brokers Two Multifamily Property Sales for $150M
Institutional Property Advisors, Calabasas, Calif., closed $150 million in sales for Cleveland and Phoenix multifamily properties.
In downtown Cleveland, IPA sold the 295-unit building Cleveland Statler Arms for $40 million. Senior Managing Director Michael Barron and Senior Directors Joshua Wintermute and Daniel Burkons represented the local private investor client.
The Cleveland Plain Dealer reported The Millennia Cos., Cleveland, purchased the property.
“The buyer plans to renovate the entire property and once it is fully transformed, the Statler will be one of downtown Cleveland’s premier luxury apartment buildings,” Barron said.
Built in 1912 as the 700-room Statler Hotel, the property was enlarged in the 1930s, became an office building in the 1980s and converted to apartments in 2000. The building on the corner of East 12th Street and Euclid Avenue is in Cleveland’s Theater District. The Cleveland Clinic, Case Western University and Cleveland State University are nearby.
In Phoenix, IPA represented Weidner Apartment Homes, Kirkland, Wash., when it sold 768-unit property Red Mountain Villas. Senior Managing Directors Steve Gebing and Cliff David also procured buyer Knightvest Capital, Dallas.The $110 million sales price equated to $143,000 per unit.
The property is the sixth-largest multifamily asset in Arizona and the sales price represented the second-largest price paid for an Arizona multifamily property.
“Excellent submarket fundamentals, the rapidly increasing costs of multifamily construction and escalating asking rents for newly constructed core assets in neighboring submarkets enhance the value of this asset and make it a prime candidate for the implementation of an exterior and interior renovation program,” Gebing said.
Red Mountain Villas was built in three phases between 1987 and 1996 on nearly 30 acres. The 44th Street/Gateway Corridor and airport area, the Papago Park Center, downtown Phoenix and the Central Avenue Office Corridor employment centers are within an eight-mile radius.
