Portola at Papago. Image courtesy of SB Real Estate Partners SB Real Estate Partners paid $ 27.5 million for East 3434 Apartments, a garden of 128 units in Phoenix. CBRE Capital Markets arranged the transaction on behalf of both the buyer and seller Break of Day Capital. Berkadia’s JV Equity and Structured Capital Group helped the buyer find an equity partner. The new owner has renamed the property Portola at Papago and plans to invest $ 2 million in capital improvements to the community, which was built in 1985. The 2.8 acre property at 3434 E. McDowell Road consists of five two and three story buildings. The floor plans include a mix of one- and two-bedroom units between 650 and 950 square feet. Communal facilities include a swimming pool, playground and laundry room. Portola at Papago is less than 5 miles from downtown Phoenix and 4 miles north of Phoenix Sky Harbor International Airport. A mall at the intersection of East McDowell Road and North 32nd Street is within walking distance of the community. The CBRE team that arranged the transaction included Executive Vice Presidents Brian Smuckler and Jeff Seaman, First Vice President Derek Smigiel and Vice President Bryson Fricke. Trading with Phoenix The acquisition is in line with SB Real Estate Partners’ plans to spend $ 200 million this year on apartment buildings in Phoenix, Las Vegas and the Inland Empire. In August, the company paid $ 24.7 million for Portola East Mesa, a 126-unit Phoenix community previously owned by FPA Multifamily. The company benefits from Phoenix’s powerful multi-family market. Driven by strong population growth – 2.3 percent in 2020 alone – and growing job opportunities in the fast-growing technology center, the metro’s occupancy rate in the lifestyle segment reached 96.5 percent in July, according to a recently published Yardi Matrix report. The subway also saw the highest volume of transactions among major U.S. metropolitan areas, with $ 4.5 billion in assets trading in the first half of 2021.
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