01 Jul Avenue North Sells 80 Unit Build For Rent Community
Scottsdale-based Avenue North LLC just sold its 80-unit south Phoenix build-to-rent community, Proximity Baseline, for $27.2 million, according to Tempe-based Vizzda LLC real estate database.
An entity tracing to CVG Properties and Jonathan Lampitt bought the 6.68-acre community, paying $340,000 per unit, according to Vizzda.
The Scottsdale investment group put $14.2 million down, with the remaining $13 million debt being carried by Avenue North, Vizzda records show.
“We’re now the lender,” said Ryan Hartman, chief vision officer for Avenue North. “They bought it and we provided financing.”
The property was 30% leased when the deal closed on July 31, he said.
“This was a development where we were selling, subject to final certificate of occupancy,” he said. “It’s in lease-up mode and trending higher. They’re taking over management and lease up. We’re simply the lender.”
Avenue North also recently sold a 7.34-acre site at 825 E. Euclid Ave. to New York-based Rockefeller Group, which is planning to get into the build-to-rent sector.
In addition, the Scottsdale developer also sold its 85-unit Proximity 16th last fall after launching a construction company to build projects for other developers and owners.
Avenue North still owns three land parcels in the South Mountain area that already have zoning approval for more rental and for-sale units, Hartman said.
A 10-acre parcel is within an Opportunity Zone that calls for a 243-unit garden apartment community, while an 18-acre parcel would house 192 two-story for-sale townhomes with attached garages. Another 4-acre parcel would offer 46 three-bedroom units.
“We’ve enjoyed pivoting from buying value-add to building,” Hartman said. “Now we’re pivoting back to value-add. We still have our sights set on continuing to find land and build as well.”
Phoenix Business Journal