LaSalle Investment Management has acquired a 488-unit, luxury multifamily community in Phoenix, Arizona, on behalf of its US core open-ended real estate fund.

The San Melia property, situated on 28 acres in Phoenix’s Ahwatukee Foothills neighbourhood, was bought for the LaSalle Property Fund.

LaSalle said the Phoenix metropolitan area was enjoying some of the higest employment and population growth in the US, which would support the local multifamily market.

The area’s labour force increased by nearly 18% over the past five years, while unemployment dropped by nearly 3%, and employers including JP Morgan Chase, Wells Fargo and Intel are planning to bring 14,000 additional jobs to the region.

While Phoenix has traditionally been associated with an ageing population, recent migration and population growth patterns have changed its profile. Millennials now account for approximately 21% of the local population, and this generation is expected to grow at five times the national rate, according to Fannie Mae.

Summit Walia, managing director of acquisitions at LaSalle, said: “Phoenix remains a top-performing multifamily market in the US, due in large part to the rapid growth and diversification of the region’s employment base, which is attracting young talent from across the country and contributing to the area’s long-term growth prospects.

“These factors, combined with the limited supply pipeline in Ahwatukee Foothills and the high quality and desirable location of the asset, made San Melia a uniquely compelling investment opportunity.”

Jim Garvey, portfolio manager for LaSalle Property Fund, said: “This transaction represents an excellent opportunity to achieve attractive risk-adjusted total returns with an emphasis on income.”