Bi g Deals

'FOR RENT' PAYING OFF

Christopher Todd sells five communities for $235 million

By STEVE BURKS T he rise in the appeal of singlefamily, for-rent homes can clearly be seen in the Phoenix market. From 2015 to 2019, the Valley saw just over 3,000 single-family, for rent homes built. Compare that five year span to the almost 1,900 under construction in the Valley currently, and the trend doesn’t show any signs of slowing.

One of the first companies to specialize in these types of communities, Christopher Todd, recently entered into a partnership with one of the largest homebuilders in Arizona, Taylor Morrison Home Corp. Taylor Morrison will buy land and build the communities, complete with the Christopher Todd brand. Christopher Todd will then put its marketing and leasing expertise to work filling those communities.

In the last two years, Christopher Todd invested more than $230 million into building communities in the Phoenix market, mostly in the western part of the Valley. In March, Christopher Todd sold five of their completed communities to The Inland Real Estate Group of Companies, Inc. (Inland). According to NorthMarq, which served as broker and provided financing, the sales price for all five is $235 million.

“These communities were attractive because of their uniqueness, fast leaseups, high occupancy and rents,” said Matt Tice, senior vice president of Inland Real Estate Acquisitions, LLC. “They are innovative, luxury, single-family home rental communities that disrupt the

multi-family industry with smart gated communities, pet-friendly one- and twobedroom single-family smart homes, private backyards, and resort-style luxury amenities in ideal locations.”

NorthMarq’s Investment Sales team led by Trevor Koskovich, Jesse Hudson, and Bill Hahn brokered the sale and represented the buyer and seller. Acquisition financing for the portfolio was arranged by James DuMars and Griffin Martin, managing directors of debt and equity for NorthMarq’s Phoenix office. Three properties closed escrow and two more properties are in escrow and will be closing when each respective community is stabilized at 90 percent occupancy. Based on the $235 million total, the average price per unit is $250,000, with an average of $279.23 per square foot — the highest in the West Valley.

“Not only is it the third largest multifamily sale, by dollar volume,

in Arizona, it is the largest horizontal single-family sale, by dollar volume, in the nation,” said Todd Wood, CEO of Christopher Todd Communities.

Oak Brook, Ill.-based Inland is one of the nation’s largest commercial real estate and finance groups. As part of the sale, each community will retain the Christopher Todd Communities name and branding, bringing added value to this transaction.

“Inland owns and manages a diversified mix of properties across the country as well as more than 16,000 apartment units and the Christopher Todd Communities will complement our existing line-up of properties in Arizona and the surrounding area very well,” Tice added.

Christopher Todd Communities On Greenway in Surprise, Christopher Todd Communities At Country Place in Tolleson and Christopher Todd Communities On Camelback in Litchfield Park were all included in the first round of transactions. Christopher Todd Communities At Marley Park in Surprise and Christopher Todd Communities At Stadium in Phoenix, are pending and will close relatively soon. A total of 943 homes were included in this transaction.

“Over the last three years, we have created a dynamic combination of home designs, lifestyle, technology and resident engagement that are intricately tied to the Christopher Todd Communities brand. That brand commands faster lease ups, 25-30 percent higher rent rates, and 50 percent higher resident retention, which all lead to a strong investor value,” said Wood in a statement. “There is financial significance in what we have created, and Inland understands that. They are very savvy investors with in-house expertise commensurate with their $2 billion worth of real estate purchases over the last 18 months alone.”

Christopher Todd opened its first community in the Valley in January of 2018 with its Greenway community. After the initial five communities (all of which were involved in the deal with Inland), Christopher Todd began work on its Estrella Commons community in Goodyear, its Happy Valley community at Happy Valley and the Loop 303 in northwest Peoria and its Mountain View community at Mountain View and Grand Ave. in Surprise.

Since its partnership with Taylor Morrison was announced, the company has announced three more communities are underway, all being built by Taylor Morrison. Included in that group is Christopher Todd’s first community in the East Valley. The 145-home community on Ellsworth, located on Ellsworth Rd. and University Dr. in Mesa, will open in the spring of 2021. The other two communities are on McDowell (91st Ave. and McDowell Rd. In Phoenix), and on Cotton Lane (N. Cotton Ln. and W. Garfield in Goodyear).

Christopher Todd’s rise as a brand was helped by their amenities. Each home comes with a robust technology package that includes things such as smart doorbells, smart thermostats, smart locks and lighting, as well as a smart entry security gate. All of the smart technology can be used via a smart phone app. Other touches that are standard in Christopher Todd homes, and this trend has been copied by other single-family rental home builders, are pet doors, a fenced backyard area for each home, along with common areas that include pools and dog parks.

MULTIFAMILY/SALES

$65M | 242,292 SF ARISTA AT OCOTILLO 3200 S. Dobson Rd., Chandler BUYER: Oregon Pacific Investment and Development Company SELLER: Gilbane Building Company BROKER: N/A

$55.4M | 268,400 SF FAIRWAYS AT CAVE CREEK 2140 W. Thunderbird Rd., Phoenix BUYER: Cynosure Investments SELLER: Columbus Pacific Properties BROKER: N/A

$54.1M | 228,021 SF MISSION SPRINGS 1311 W. Baseline Rd., Tempe BUYER: TruAmerica Multifamily SELLER: 29th Street Capital BROKER: Cushman & Wakefield

$49.6M | 195,694 SF COUNTRY CLUB VERANDAS 1415 N. Country Club Dr., Mesa BUYER: Bridge Investment Group Partners SELLER: Weidner Apartment Homes BROKER: N/A

$42.76M | 152,254 SF CHRISTOPHER TODD COMMUNITIES ON CAMELBACK 12350 W. Camelback Rd., Litchfield Park BUYER: Inland Real Estate Group SELLER: Christopher Todd Communities BROKER: NorthMarq

RETAIL/SALES

$100M | 381,819 SF DOUBLETREE RESORT BY HILTON PARADISE VALLEY 5401 N. Scottsdale Rd., Paradise Valley BUYER: Southwest Value Partners SELLER: Rockpoint Group BROKER: N/A

$62M | 214,236 SF HILTON SCOTTSDALE RESORT & VILLAS HOTEL ARIZONA 6333 N. Scottsdale Rd. & 7200 E. McDonald Dr., Scottsdale BUYER: Southwest Value Partners SELLER: Rockpoint Group BROKER: N/A

$21.5M | 231,924 SF HILTON MESA 1011 W. Holmes Ave., Mesa BUYER: Linchris Hotel Corporation SELLER: American International Group BROKER: N/A

$12.25M | 7,554 SF HILLSTONE RESTAURANT - BILTMORE 2650 E. Camelback Rd., Phoenix BUYER: Hillstone Restaurant Group, Inc. SELLER: Robert L. Young BROKER: N/A

OFFICE/SALES

$61.5M | 292,102 SF 1501 and 1620 W. Fountainhead Pkwy, Tempe BUYER: LaSalle Investment Management SELLER: Cypress Office Properties BROKER: JLL

$22M | 98,539 SF CANYON VILLAGE 18867 N. Thompson Peak Pkwy, Scottsdale BUYER: Thomas M. Foley SELLER: Laurus Corporation BROKER: Cushman & Wakefield

$10.17M | 109,310 SF PROMENADE AT SOUTH MOUNTAIN 8222 S. 48th St., Phoenix BUYER: MA Engineers SELLER: Dunbar Real Estate Investments BROKER: CBRE

$9.9M | 27,903 SF 3125 S. Gilbert Rd., Chandler BUYER: Gerald A. Phillips SELLER: Legacy Traditional Charter Schools BROKER: N/A

$9.2M | 50,912 SF CAMELBACK MEDICAL PLAZA 5040 N. 15th Ave., Phoenix BUYER: Venator Development and Robert Moreno SELLER: Gold Coast Property Management BROKER: N/A

LAND/SALES

INDUSTRIAL/SALES

$16.4M | 100 AC 27 Ave and W. Southern Ave., Phoenix BUYER: KB Homes and Lennar Homes SELLER: Strategic Capital Management and Reeb Group Ltd. BROKER: Nathan & Associates

$16.2M | 37.38 AC 24125 N. 7th Ave., Phoenix BUYER: Copart of Arizona SELLER: Linda and Ronald McClure BROKER: N/A

$15.6M | 42 AC Off N. Palo Verde St., Maricopa BUYER: D.R. Horton, Inc. SELLER: Willis Property Company BROKER: N/A

$15.3M | 29.06 AC Bungalows on Camelback 4747 N. 99th Ave., Phoenix BUYER: Cavan Companies SELLER: Donald K. Gearheart BROKER: N/A

$13.3M | 474 AC SWC Judd Rd. & Cooper Rd., Florence BUYER: Langley Properties SELLER: Fructuoso C. Castanon, Jr. BROKER: Cushman & Wakefield

$122M | 184,306 SF PAYPAL DATA CENTER 4010 N. 3rd St., Phoenix BUYER: Landmark Dividend SELLER: PayPal Inc. BROKER: N/A

$72M | 819,892 SF AMAZON FULFILLMENT CENTER 16920 W. Commerce Dr., Goodyear BUYER: The RMR Group SELLER: Hines Global Income Trust, Inc. BROKER: N/A

$61M | 554,000 SF WEST 202 LOGISTICS CENTER 3333 S. 59th Ave., Phoenix BUYER: Cohen Asset Management, Inc. SELLER: Trammell Crow Company BROKER: N/A

$32.8M | 418,651 SF PARK SKYWAY BUSINESS PARK 12000 N. 132nd Ave., Surprise BUYER: Dalfen America Corp. SELLER: Mazal Realty BROKER: JLL