100-unit Summit on Thomas Apartments in Phoenix sell for $21 million

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The Summit on Thomas apartments
The Summit on Thomas apartments in Phoenix have been sold to Cowabunga, LLC for $21 million.

The Summit on Thomas apartments in Phoenix have been sold to Cowabunga, LLC for $21 million. Cowabunga is a private capital family office focused on the acquisition of urban infill sustainable communities throughout Phoenix. It was represented by Kidder Mathews’ Karl Abert and Bret Zinn. The seller is Rise48, a regional investment group known for acquiring opportunistic multifamily communities and strategically adding value.

The property is located at 2735 East Thomas Road. It comprises 10 two-story buildings with 100 units equaling 60,420 rentable square feet situated on 2.26 acres. The purchase provided the buyer with an opportunity to build on the property’s preexisting upgrades, as 59 percent of the units are optimized for future rent increases. In addition, 50 percent of the units are configured to accommodate washer/dryers installed for additional rent premiums.

Multifamily communities that are substantially renovated and stabilized are scarce and rarely sold in the central-east Phoenix corridor. The buyers intend to renovate the remaining classic units and stabilize operations and revenues over the future holding period.

“With the enduring supply chain challenges and increasing costs in both labor and materials, multifamily renovations are becoming an ever more expensive and timely endeavor,” said Abert. “The Summit on Thomas acquisition enables the buyer to focus their efforts on improving the community amenities as well as renovate a small percentage of units.”