Originally Posted in Phoenix Business Journal May 10, 2018
New York-based Goldman Sachs Asset Management Private Real Estate paid $95.1 million for a 341-unit apartment complex near Arizona State University in Tempe.
While this acquisition marks the company’s 16th multifamily investment nationwide — it currently owns 3,948 units — this is the first apartment complex in the Phoenix area.
The 341-unit Hanover Mill Avenue apartment complex at 101 W. Fifth St. made the Phoenix Business Journal’s list of the area’s most exclusive apartments.
But it won’t be Goldman Sachs’ last purchase in the area, said Joseph Sumberg, co-head of Goldman Sachs Asset Management Private Real Estate, or GSAM PRE.
“We’re planning on acquiring $2 billion worth of real estate this year,” he said. “Phoenix continues to be a target market.”
Since making its first investment in April 2012, the company has focused on high-growth markets such as Phoenix.
“We’re finding markets like Phoenix are going to be very attractive,” he said. “If we can target the right submarkets like Phoenix, we’re going to be investing there more. I will say there’s a lot of supply happening in Phoenix.”
The company also owns office and retail space in the Phoenix market, including Scottsdale Financial Center I and Scottsdale Financial Center III near Scottsdale Fashion Square. It does not own the middle building, Scottsdale Financial Center II.
About a year ago, GSAM PRE bought Bethany Crossing, a retail center on the northeast corner of Bethany Home Road and 35th Avenue, which is anchored by a Walmart store.
Taking advantage of the energy being produced by the nearby Grand Canyon University, GSAM PRE changed the name of that retail center to Grand Canyon Crossing.
“The Walmart is the closest grocery to the university,” Sumberg said. “Our goal is to feed off the density that’s in that immediate area.”