North 19th Avenue 6250, Phoenix, AZ, 85015, US

The Palazzo Phoenix

Asset Description

The Palazzo is a large 327-unit senior housing rental community consisting of independent living, assisted living, memory care and skilled nursing, and situated on approximately 13.8 acres in central Phoenix, Arizona. The immediate vicinity is populated by a variety of retail, restaurants, grocery stores, and residential areas.

The Subject was originally constructed in 1985 in two phases and in 2017-2019 received $10 million in a comprehensive renovation. With the renovation now completed, The Palazzo is a competitive Class B property with high quality finishes and open plan common areas.

The campus is comprised of two towers (North and South) each of which stand three stories and totals approximately 335,000 SF comprised of 327 units and “neighborhood” style common areas with kitchen, dining, activity, and outdoor space available on both levels.

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Attributes

Number of units

327

Building area gross

42,348 m²

Occupancy

75%

Year built

1987

Investment strategy

Opportunistic

Year renovated

2019

Number of floors

Media

Investment Highlights

New Institutional-Quality Regional Operator: Avista Senior Living, headquartered nearby, is a regional owner/operator who took over operations June of 2023. Avista owns and operates 30 senior housing communities across the Western U.S., with 12 properties in Arizona.

Attractive $10 Million Capital Improvement: Ownership recently completed a major $10 million capital improvement program ($31,000 per unit) which updated the majority of the common spaces, upgraded a significant portion of the units and repositioned the community by converting approximately 143 independent living units to 134 units of assisted living plus additional common space.

Middle Market Appeal: There are multiple competitors in close proximity to The Palazzo charging higher rates, which allows the Property to continue growing rents and serving a high demand customer base for the indefinite future.

Urban Infill Location: Located in the Christown neighborhood of downtown Phoenix, The Palazzo enjoys excellent visibility with over 23,000 daily drive bys on 19th Avenue. The primary market area is densely populated with a total population of nearly 803,000. Phoenix has grown exponentially over the last decade to become the 5th largest city in the US.

Optimal Offering Structure: The Property is offered free and clear of management and financing encumbrances.