July 28, 2018 (PHOENIX) — NexMetro Communities, a pioneer of single-level luxury leased home neighborhoods, has sold three assets this month for $98M. The three independent transactions are the first asset sales for the company and mark record-setting cost per door multifamily deals in thriving Phoenix submarkets.
NexMetro today closed on the sale of Avilla Grace in Chandler, a 194-home neighborhood that sold for $45M. On June 25, the company sold 116-unit Avilla Heights (also in Chandler) for $27.84M, and sold 125-unit Avilla Palm Valley in Goodyear for $25.1M on June 13.
“These NexMetro sales are a milestone for the company, and further validate the tremendous value in the market for the higher-quality leased-living experience that makes Avilla such a unique alternative to the typical apartment,” said Josh Hartmann, President and COO of Arizona-based NexMetro Communities, adding that the company evaluates the hold or sell strategy for each of its assets individually. Hartmann said the company’s Avilla gated neighborhoods with single level, detached homes with private backyards, 10-foot ceilings and high-end finishes, generated interest from a myriad of different buyer and investor groups – from high wealth individuals to public REITs. “Avilla neighborhoods offer a truly unique alternative to the typical rental experience, and investors understand the power of its tremendous appeal.”
Transaction Highlights According to CoStar Group, Inc:
- The Avilla Palm Valley transaction in Goodyear represents the highest price per door ever recorded in the West Valley submarket;
- The Avilla Heights and Avilla Grace transactions represent the second and third highest price per door recorded in Chandler (excluding portfolio sales);
- All three projects command rents well above the submarket average and stabilized within one year of delivery.
Under its Avilla Homes moniker, NexMetro currently has more than 4,000 new rental homes completed, under construction or under contract in the Phoenix, Dallas and Denver and Orlando metro areas. The Goodyear asset represented the company’s official entry into the Phoenix market in 2014 after a group of innovative entrepreneurs developed the Avilla Homes prototype with seven rental neighborhoods in Tucson, Arizona starting in 2011. NexMetro was recently ranked #119 on Professional Builder’s 2018 Housing Giants List (a 47% jump from the year prior) because of its unique detached single family rental production.
“NexMetro has seen tremendous success in identifying an unfulfilled niche in housing with our hybrid leased new-home option for consumers who are renters by choice,” said NexMetro CEO and cofounder, Ken Abrahams. “This is truly a hybrid housing option that combines the best of both worlds for people who want to live in a new home, but don’t want the burden of maintenance and constraints of a mortgage.”
Avilla Palm Valley – 4200 N. Falcon Drive, Goodyear – Closed 6/13/18 – 125 homes – $25.1M/$200,800/door. Buyer: New York-based RN Falcon, LLC
Avilla Heights – 255 E. Chandler Heights Road, Chandler – Closed 6/25/18 – 116 homes – $27.84M/$240,000/door. Buyer: Single purpose entity formed by California-based The Certe Group.
Avilla Grace – 2121 N. Grace Blvd, Chandler – Closed 6/28/18 – 194 homes. – $45M/$232,000/door. Buyer: Entity of Illinois-based The Inland Real Estate Group of Companies, Inc.
Berkadia was the broker representing NexMetro on all three sales, with leadership from: Senior Managing Directors Mark Forrester and Ric Holway; Senior Managing Director Art Wadlund and Director Clint Wadlund; Senior Director Dan Cheyne.
About Avilla Homes
A truly unique alternative to the typical rental experience, Avilla Homes neighborhoods feature single level, detached homes for lease in a gated enclave. The one, two and three-bedroom floor plans feature private entrances, outdoor patios and backyards, along with high-end finishes such as 10’ ceilings, granite/quartz countertops, stainless steel appliances, full-size washer and dryers, and more. The Class-A, pet friendly communities offer the perks of neighborhood living with optional garages, resort-style pool, beautifully landscaped recreation areas, dog parks, and even an electric car charging station – all maintained by a professional management company, without mortgage payments or HOA fees. To learn more about Avilla Homes visit www.avillahomes.com or connect via Facebook and Twitter.
NexMetro Communities is an innovative development company focused on building luxury leased home neighborhoods that serve lifestyle conscious consumers seeking a new home experience without the burdens of a mortgage. In partnership with its affiliated companies, NexMetro has developed Avilla Homes neighborhoods since 2010 in key Sunbelt locations. Combining elements of residential single-family living with rental terms and management, NexMetro provides a growing market niche of consumers a leased home experience like no other. For more information on NexMetro, visit www.nexmetro.com.
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