Dealmaker: Institutional Property Advisors Brokers $47M Arizona Multifamily Sale

Port Royale, Sierra Vista, Ariz.

Institutional Property Advisors, Ontario, Calif., sold Port Royale, a 252-unit multifamily property in Sierra Vista, Ariz., for $46.5 million.

The sales price represents $184,524 per unit.

“Southern Arizona is one of the state’s most rapidly growing areas and in April, Sierra Vista was ranked No. 7 nationally for year-over-year rent growth,” said Hamid Panahi, IPA Senior Vice President. “The seller recognized that a post-2000-vintage asset like Port Royale is rarely available to new investors and capitalized on the demand.”

IPA Senior Director Clint Wadlund noted previous ownership implemented a renovation program that the new ownership can continue, adding value for existing and new residents. Panahi, Wadlund and IPA’s Steve Gebing and Cliff David represented seller Element Property Co., Los Angeles, and procured buyer Sundance Bay, Salt Lake City.

The property is located near Arizona State Routes 82 and 90, the University of Arizona South, Cochise College and Sierra Vista Municipal Airport. Sierra Vista’s major employers include Canyon Vista Medical Center and U.S. Army Fort Huachuca, which is five miles from Port Royale.

Built on 13 acres in 2004 and 2008, the property is a gated, 18 residential building asset with a renovated leasing office and clubhouse and a resort-style swimming pool. The one-, two- and three-bedroom apartments have full-size washers and dryers and private patios or balconies. Units average 874 square feet.