Pillar Communities Acquires Multifamily Development for $57.5 Million
Hunt Companies, Inc., Tilton Development Company, Civitas Capital Group and Ryan Companies US, Inc., announce the sale of Circa Central Avenue, a multifamily development in downtown Phoenix. Private Portfolio Group, LLC, purchased the six-story community that includes four levels of residential apartments over two levels of parking, as well as five, two-story townhomes and two creative office suites for $57.5 million.
Circa Central Avenue, built by Ryan, opened in 2019. The project experienced a strong lease-up in its first year, averaging 25 leases per month, and is currently 92 percent occupied.
According to CBRE research, multifamily rent growth in Metro Phoenix increased 8.2 percent year-over-year in quarter three 2019—the strongest growth of all United States metro areas. Further, the central corridor has led all Phoenix urban submarkets in multifamily absorption in each of the last three years with net absorption over the last four quarters totaling ±1,500 units.
Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch of CBRE represented the sellers.
“Circa Central Avenue is a top-of-the-market community with amenities that appeal directly to the fast-growing, renter-by-choice, demographic in Phoenix’s urban core,” said Matt Pesch, executive vice president with CBRE Phoenix Multifamily Institutional Properties. “The sale of this successful development was rewarding for all parties involved.”
The project site was acquired in 2017 by Hunt, Tilton, Civitas and Ryan. The partnership received a construction loan from Johnson Bank and Ryan Companies broke ground in June 2017. Circa Central Avenue officially opened its doors to residents in January 2019.
The multifamily development has seven unique unit layouts and an abundance of amenities including a cycle loft, sports lounge, pool, outdoor cooking facilities, dog run, juice bar and 24-hour fitness center. Pillar Communities, a solely owned management company of PPG, will be managing the asset.