Ares, TruAmerica Buy Metro Phoenix Property for $31M
The joint venture plans a multi-million-dollar capital improvement program at Broadstone Gateway, a 240-unit community in Avondale, Ariz.
By Dees Stribling, Contributing Editor
Funds managed by Ares Management and TruAmerica Multifamily have acquired Broadstone Gateway, a 240-unit multifamily community in metro Phoenix. The property traded for $30.8 million.
Broadstone Gateway is at 1700 North 103rd Ave. in Avondale, about 20 miles west of downtown Phoenix. Built in 2004, the community features a mix of one-, two- and three-bedroom units. Common amenities include a resort-style swimming pool and spa with poolside cabanas, fitness center, community barbecues, bocce ball court and playground.
According to the new owners, the partnership will execute a multi-million-dollar capital improvement program. Changes to the unit interiors will include new faux-stainless steel appliances, quartz kitchen and bathroom countertops, and new lighting and plumbing fixtures. Improvements will also be made to the pool area, clubhouse and fitness center, along with new signage and landscaping to enhance the curb appeal of the property.
This is the second investment for the Ares-TruAmerica joint venture. In November, the JV acquired a 1,402-unit multifamily portfolio in Baltimore for $236 million.
“The acquisition of Broadstone Gateway is consistent with our strategy of investing in multifamily properties that have repositioning potential,” said Howard Huang, partner in the Ares Real Estate Group. With about $10 billion in assets under management, Ares’ U.S. equity value-add strategy has invested in over 31,000 units in the last 10 years.
With the acquisition of Broadstone Gateway, TruAmerica adds 240 units to the 1,567 units it already owns in the greater Phoenix area. TruAmerica specializes on acquiring and renovating Class B multifamily properties.