Utah investor plans to modernize property
Phoenix, March 7, 2019 – The Laguna Village apartment community at 102 Palomino Drive in Chandler, Arizona, sold to a Utah-based investor for $70.25 million. The buyer intends to complete modernization of the 460-unit property and increase the development’s value within a submarket that has recently experienced strong population growth.
“This property is ideally suited for upgrades and re-positioning,” said Cindy Cooke senior executive vice president of Colliers International in Arizona. “Laguna Village is located in Chandler, which has seen some of the strongest employment growth in the Valley. The area has also experienced tremendous population growth, and Laguna Village is surrounded by a very limited supply of rental competition.”
Bridge Acquisitions, headquartered in Salt Lake City, purchased the property from PB Bell of Scottsdale. Cindy Cooke and Brad Cooke of Colliers represented the seller in the transaction. Bridge Acquisitions was self-represented.
Laguna Village was built in 1985, and consists of 31 two-story buildings, totaling 363,684 square feet. The one- and two-bedroom units average 792 square feet each, with full-size washers and dryers in every unit. Bridge Acquisitions intends to continue the renovations that were started by PB Bell, plus upgrade all the common area amenities at the community. Properties in the submarket that have completed renovations are achieving rent premiums of up to $200 per month.
“This outstanding submarket has experienced 10 percent rent growth in recent history, while enjoying a vacancy rate below 5 percent,” said Cooke. Westech Corporate Center is positioned directly across the street from Laguna Village. The 130-acre master-planned business park is scheduled to have more than 2,000 employees on-site at its completion.
Laguna Village is located between the dynamic downtown Chandler and downtown Gilbert submarkets. Situated less than five minutes from US-60, Laguna Village provides quick access to the Loop 202 Red Mountain freeway, Loop 101 freeway and Interstate 10. Approximately 80 tech companies are situated within 15 minutes of the property along the established Loop 101 Tech Corridor, including Amazon, Microsoft, GoDaddy and PayPal. In addition, the neighborhood benefits from high-end retail in downtown Gilbert, as well as proximity to Banner Desert Medical Center.
About Colliers International
Colliers International (NASDAQ, TSX: CIGI) is a leading global real estate services and investment management company. With operations in 68 countries, our 14,000 enterprising people work collaboratively to provide expert advice and services to maximize the value of property for real estate occupiers, owners and investors. For more than 20 years, our experienced leadership team, owning more than 40% of our equity, have delivered industry-leading investment returns for shareholders. In 2018, corporate revenues were $2.8 billion ($3.3 billion including affiliates), with more than $26 billion of assets under management.
Colliers International in Arizona has served clients locally and globally for more than 35 years.