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Canadian Investor Makes Phoenix Debut With $146M Acquisition

Canadian Investor Makes Phoenix Debut With $146M Acquisition

A Canadian investor is making its debut in metro Phoenix, with plans to grow its multifamily investment portfolio to 15,000 units by 2025.

Toronto, Canada-based Oxford Properties Group paid $146 million for the 523-unit Ten01 on the Lake in Tempe, said Asher Gunter, executive vice president of institutional properties for CBRE. Gunter, along with Tyler AndersonSean Cunningham and Matt Pesch brokered the deal.

“The buyer assumed an existing loan on the property,” Gunter said.

Jeff Turkanis, head of U.S. Residential at Oxford, said the Phoenix market, along with Atlanta, Austin and Dallas, will be key to Oxford’s plan to build out its U.S. portfolio.

“We have a very disciplined approach to our market selection process and Phoenix has been a market that has been on our radar for awhile,” Turkanis said.

Watching the Phoenix market’s resilience during the coronavirus pandemic, Turkanis said the local economy is well diversified and has a strong underpinning of growth-oriented industries.

“We believe Phoenix, driven by favorable demographic trends and healthy employment/income growth expectations, will be one of the stronger performing metro areas across the country,” Turkanis said.

Thomas Brophy, research director for Colliers International, said metro Phoenix already has recouped 85% of Covid-related job losses.

“Over the last several years, many institutional investors such as Oxford Properties, have been increasing their real estate holdings, particularly in multifamily and industrial — not only for their higher yields, but also as a hedge against the potential for near-to-medium term inflation,” Brophy said.

A Colliers 2021 Global Investor Outlook Survey shows 98% of investors across all regions aim to expand their portfolios this year, with around 60% looking to expand by more than 10%.

Boston-based Taurus Investing Holdings LLC also recently made its own Arizona debut, with plans to buy more.

All signs are pointing to the Phoenix area being a top market in the country for multifamily investment, said John Kobierowski, senior managing partner for ABI Multifamily in Phoenix.

“We are seeing unprecedented interest and sales activity from out-of-state investors on everything from small to large institutional assets,” he said. “Strong rent growth, strong population in-migration, business friendly state administration and the best climate are all contributing to this burst in activity. I don’t expect it to slow down.”

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