Hamilton Zanze completed the $55 million sale of Arches at Hidden Creek, a 432-unit multifamily community located at 1586 W. Maggio Way in Chandler, AZ.
CBRE’s Phoenix office negotiated the transaction. The seller was a venture between Hamilton Zanze of San Francisco, CA and New York, NY-based New York Life Real Estate Investors, on behalf of institutional clients. The buyer was Seattle, WA-based Security Properties.
“Arches at Hidden Creek is located just one mile east of the Price Road Corridor, the Valley’s largest and most established high-tech employment corridor. This location positions the community to capitalize on strong demand for multifamily housing in the Chandler submarket,” said CBRE’s Sean Cunningham.
Built in 1985, Arches at Hidden Creek is a garden-style community featuring all two-story buildings and a desirable low-density site plan. Community amenities include four swimming pools, a resident clubhouse and a fitness center. The community recently received upgrades to the clubhouse, fitness center and other community areas. Individual residences feature well-appointed kitchens, spacious walk-in closets, washer/dryers, fireplaces, and private patios/balconies.
Read more at AZ Big Media
HZ sold a five-property multifamily portfolio in Tucson for an undisclosed sum. The communities contain 1,004 units totaling 686,314 square feet.
The transaction includes the 160-unit Hampton Park, the 254-unit San Mateo, the 152-unit Solano Springs, the 310-unit Lakeside Apartments and the 128-unit Highland Apartments. The latter property is situated in Sierra Vista, while the rest are located in Tucson.
The portfolio features an average occupancy rate of 94%. The properties were all constructed between 1973 and 1985.
This is buyer Monarch Investment & Management Group’s first purchase in Arizona. Cindy Cooke and Brad Cooke of Colliers International represented the seller, Hamilton Zanze, in this transaction.
San Francisco real estate investment firm Hamilton Zanze bought a $15.4 million apartment complex on the Northeast Side as it continues to expand its footprint in San Antonio.
The firm bought the 5.5-acre, 150-unit Niche apartment complex at the corner of Harry Wurzbach Road and Lynn Batts Lane on Aug. 31, county property records show. It has purchased three other apartment complexes in San Antonio since entering the market last year.
The firm also is under contract to buy the Meridian Apartments, a 4.8-acre complex next to the Quarry Golf Club, said David Nelson, the firm’s managing director for acquisitions. The complex is currently owned by Chicago-based Cornerstone Real Estate Advisors and was assessed at $33.1 million this year, according to the Bexar Appraisal District.
Hamilton Zanze, which primarily invests in the West and Southwest United States, was attracted to San Antonio by its diverse economy that seems resistant to economic downturns, said Nelson.
“We love the market in terms of USAA being there,” as well as the presence of the medical district and the oil and gas industry, Nelson said. “We’re looking at it for a long-term market for us.”
Read more at the San Antonio Express-News
Nonfarm payroll employment increased by 151,000 while the unemployment rate was flat at 4.9% in August, according to the U.S. Bureau of Labor Statistics. Employment continued to trend up in several service-providing industries, such as accommodation and food services, while employment in mining continued to decline.
Read more at BLS.gov
A group of California apartment investors has bought a large Eugene apartment complex for $31 million, the third time this year that investors from the Golden State have paid $30 million or more for a Eugene apartment building.
Ecco Apartments, a 192-unit complex off River Road and Hatton Avenue built by private developers using federal assistance to create government-subsized housing for lower-income families, sold last week. The majority buyer was San Francisco-based Hamilton Zanze.
“We really, really like the Eugene market,” said David Nelson, managing director at Hamilton Zanze. “We own a bunch of assets in the Portland metro area, but we were looking to Eugene to be a long-term play,” Nelson said. The firm plans to build a pool at Ecco Apartments, but doesn’t have any other changes in store, he said.
Read more at The Register-Guard
A recent article from CBRE’s research team “busts” the popular narrative that millennial migration to cities is causing the decline of the American suburb.
“Census data disagree with the media on where millennials actually live and where they have been moving to,” writes Darin Mellott, Director, CBRE’s Research and Analysis.
The article reports only 30% of millennials live in urban areas. In 2014, more than half a million people between the ages of 25 and 29 moved from cities to the suburbs, while only 426,000 moved in the opposite direction. For younger millennials aged between 20 and 24, the flow was even more pronounced, with 721,000 moving out of cities to the suburbs and 554,000 leaving the suburbs to pursue city life.
Read more at CBREcapitalwatch.com
The U.S. homeownership rate fell to a five-decade low in the second quarter of 2016, according to the Census Bureau. At 62.9%, the homeownership rate is exactly where it was in the first quarter of 1965.
After reaching a high of 69.2% in the fourth quarter of 2004, the percentage of homeowners dropped dramatically as residents faced the worst recession since the Great Depression. Meanwhile, the rental vacancy rate – which includes all forms of rental housing — dropped to its lowest level since the fourth quarter of 1985.
Read more at Axiometrics.com
A San Francisco real estate firm has notched an eight-figure acquisition near Coors Field.
Hamilton Zanze bought the Diamond at Prospect apartment building at 3001 Fox St. last month for $20.5 million. It’s at least the third Denver area apartment buy for the firm over the last six months, managing director David Nelson said.
“We’ve made a push to purchase affordable housing properties in the past two years, and we’ve had a pretty large presence in Denver,” Nelson said. “This was a unique opportunity because it’s so close to downtown Denver and has great walkability.”
Read more at BusinessDen.com
The multifamily housing market is moderating but will remain strong this year and into next, according to Freddie Mac’s Multifamily Mid-Year Outlook 2016, released August 2nd.
Multifamily fundamentals moderated in the first half of 2016, slowing from 2015’s record-high growth, as was expected for this phase of the economic cycle. The moderation indicates a healthy market is moving toward equilibrium. Strong economic and demographic fundamentals will continue to support growth in the multifamily industry, but at more sustainable levels.
“We entered a period of positive moderation during the first half of 2016 that is natural at this point in the economic cycle,” said Steve Guggenmos, Freddie Mac Multifamily vice president of research and modeling. “Rather than indicating overproduction, current and projected supply levels show a measured response to market changes and demand from Millennials and other groups with high propensities to rent. We expect the multifamily sector to continue to grow at above pre-recession levels, although market differences will continue to vary.”
Read more at FreddieMac.com
Nonfarm payroll employment increased by 255,000 in while the unemployment rate was flat at 4.9% in June, according to the U.S. Bureau of Labor Statistics. Employment increased inprofessional and business services, health care, and financial activities, while employment in mining continued to decline.
Read more at BLS.gov