Phoenix, Arizona:  One of the hottest housing markets before the recent corrections continues to show strong fundamentals for growth with the sale of two apartment complexes for a total of $66M.

According to The Arizona Republic, this is “a sign that there’s still potential for the Valley’s apartment rental rates to climb.”  These purchases are just the latest in a trend of “local and out-of-state firms…snatching up complexes, making everything from minor to major renovations in an effort to push up rents.”  This trend has been “spurred by Metro Phoenix’s population and job growth…”

The reported average rent for a Valley apartment during the second quarter of this year was $809.  That’s a 3.3 percent increase over the past year.

“We think Phoenix has great long-term fundamentals for multi-family housing, given is strong employment and population growth,” said Ben Friedman, President of Abacus Capital Group LLC.  Abacus, based in New York City, bought one of the multi-family units, paying $37 million for the Renaissance at South Mountain apartments on 50th Street in Phoenix.

The other deal involved Scottsdale-based PEM Real Estate Group shelling out $29.3 million for The Village at Gateway Pavilions, on 103rd Avenue in Avondale.

Many economists and leaders in the industry are waiting to see the effect of increased home sales on rental rates in places like Phoenix.  Homebuilders are already offering price cuts and incentives for new home buyers that are causing some would-be renters to go ahead and “jump off the fence and buy,” according to Paul Mashni, CEO of PEM.