CIM Group, Tides Equities Buy Phoenix Apartments for $255M
A capital improvements plan is underway for the 1,000-unit property.
Tides Equities is continuing its buying streak in the western U.S., this time partnering with CIM Group to acquire a 1,012-unit community in Phoenix. The joint venture acquired Del Mar Terrace for $255 million in an off-market transaction from the original developer, Heers Development.
According to CIM Group, the sale is the second-largest, single-asset multifamily sale in Arizona history. NorthMarq’s Trevor Koskovich, Bill Hahn, Jesse Hudson and Ryan Boyle represented Tide Equities in the transaction, which saw bridge loan financing and buyer’s equity provided by NorthMarq’s Loren Heikenfeld, Kevin Leamy, Jeff Erxleben, Lauren Bresky and Joel Heikenfeld.
The new ownership is planning to rebrand the community as The Tides on 71st and will also invest in several upgrades. The community was built in 1985 as 48 two-story buildings that house one- and two-bedroom units that average 709 square feet. The Tides on 71st also includes a fitness center, clubhouse, playground, soccer field, swimming pools and picnic areas. Northmarq told Multi-Housing News that the community was 99 percent occupied.
Located at 7007 W. Indian School Road in Phoenix’s Maryvale submarket, residents have access to the downtowns of Phoenix, Glendale, Scottsdale and Tempe through the Interstate 10, US-60 and the Loop 101 freeways.
AMASSING ACQUISITIONS IN THE WEST
Shaul Kuba, co-founder & principal at CIM Group, said in prepared remarks that the new ownership is going to invest in a program of improvements. Northmarq also told MHN that Tides Equities has a $19 million budget for capital improvements, which is expected to fully renovate each unit and the common areas.
For Tides Equities, The Tides on 71st will be its 57th acquisition in the greater Phoenix area and its 107th overall in the western U.S. since 2016. The company focuses on well-located, Class B and core-plus multifamily properties with high value-add upside, like the three communities in the greater Phoenix area that Tides Equities recently acquired in January for $122.5 million.