Logan Capital Advisors (LCA) announced today the acquisition of The Overlook at Buffalo Park, a 155-home, build-to-rent (BTR) single-family rental community in Flagstaff, Arizona for $75 million. LCA purchased The Overlook at Buffalo Park from St. Clair Holdings, a real estate investment company based in Atlanta.
The Overlook at Buffalo Park was built in 2017 and 2020 and consists of 96 separate residential buildings, along with a large central clubhouse on ±18 acres (8.61 units/acre). As Flagstaff’s only BTR community, The Overlook offers all single-story homes, with one-bedroom and two-bedroom homes built as duplexes and three-bedrooms built as stand-alone homes. Large floorplans average 1,097 SF and offer wood-style vinyl plank flooring throughout, volume ceilings, quartz countertops, stainless steel appliances, in-home washer/dryers, abundant storage, and substantial private yards or patios.
David Lang, Managing Principal of St. Clair Holdings stated, “The Overlook at Buffalo Park has been an exceptional performing asset for us ever since we purchased the property in April 2021. I am confident that Logan Capital will experience continued strong performance. I also want to recognize Logan Capital for performing as promised despite the recent interest rate fluctuations.”
The Overlook is located in Flagstaff, two hours north of Phoenix, and sits at 6,900 feet, offering a temperate mountain climate. Flagstaff is home to Northern Arizona University (NAU), which has ±23,000 students and ±3,500 on-site faculty. The Overlook is located three miles northeast of downtown Flagstaff in the developing McMillan Mesa Village master plan. The property is near Flagstaff Medical Center and is adjacent to both Basis Flagstaff, the top ranked elementary school in Arizona, and Buffalo Park, a 215-acre park with over two miles of walking trails.
This was LCA’s third BTR purchase in Arizona since February 2021. According to Ruben Islas, LCA Founding Partner, “The Overlook is a great addition to our growing Arizona portfolio. The low-density single-story design, high-quality interior finishes, and superior location next to Buffalo Park appeal to the lifestyle renter in Flagstaff. We thank St. Clair Holdings for selecting us as the purchaser and for maintaining strong occupancy and rent growth throughout the closing process.”
Jules Arthur, LCA Founding Partner, added “LCA’s business model continues to be the purchase of newer high-quality multifamily properties in the key Southwest growth markets of Las Vegas, Phoenix, and the Inland Empire. We employ low leverage, long-term, fixed-rate, interest-only debt to maximize cash flow and reduce risk over our ownership period. We believe this model offers the best risk-adjusted returns during the current period of economic uncertainty and volatility, which we entered in early 2022.”
Mark Forrester, Andrew Curtis, Ric Holway, and Dan Cheyne of Berkadia represented St. Clair Holdings in the sale of the property, and Sara Petersen of City National Bank arranged financing.