29th Street Capital has made its 16th multifamily investment in the Phoenix metro area with the acquisition of Oceana Apartments. The firm purchased the Class B+ community in Avondale, Ariz., from an undisclosed seller but Yardi Matrix data shows that the last time Oceana Apartments changed hands was in June 2017 when Ares Management acquired it for nearly $30.8 million from Alliance Residential Co.
The 240-unit property offers one-, two- and three-bedroom units ranging from 685 to 1,071 square feet, according to Yardi Matrix data. Oceana Apartments was built in 2004 and includes a fitness center, clubhouse with business center, and a pool and spa. Dusty Eddy, senior vice president of acquisitions of the Southwest Region for 29th Street Capital, told Multi-Housing News that the community is approximately 97 percent occupied and added that the firm has planned approximately $2.1 million in renovations.
The renovations will include enhancements to the clubhouse, fitness center and outdoor amenity spaces along with fresh exterior paint. As for the units, 29th Street Capital is planning to install water-efficient toilets in every unit. The new ownership will also be putting its in-house property management company, Haven Residential, in charge of the management and leasing of Oceana Apartments.
Eddy said in prepared remarks that the community is close to some of the biggest entertainment venues and fastest-growing employment hubs in the area. Located at 1700 N. 103rd Ave., the community is near the Interstate 10 and Loop 303 industrial and distribution corridors that are home to major employers including Amazon, Chewy, Lockheed Martin, Microsoft, Macy’s Distribution, Boeing, Sub-Zero and Dick’s Sporting Goods.
SOUTHWESTERN U.S. EXPANSION
Back in 2019, 29th Street Capital acquired another community in Avondale, the 168-unit Las Casitas Apartments. Now in 2022, Eddy told MHN that the firm is “extremely bullish on the Phoenix market” due to the market fundamentals that show strong job and population growth. Eddy added that 29th Street Capital is going to continue looking for more value-add or core-plus acquisitions, but will also look to expand into developments in the area.
Outside of Arizona, the firm’s portfolio also included several communities in the Las Vegas market, but Eddy told MHN that the current portfolio only has one property there. He added that the firm is planning to grow its footprint in Las Vegas as well as expand to the Alburquerque, N.M. market, since both markets show similar market fundamentals to the Phoenix. Overall, 29th Street Capital has acquired more than 27 multifamily assets across the U.S. in the past year, totaling more than 6,300 units.