By Mihaela Coste
Security Properties and Pacific Life Insurance Co. acquired Andante Apartments, a 576-unit community located in the Phoenix suburb of Ahwatukee, for $82.3 million.
According to Yardi Matrix data, the sale was subject to a $57.7 million Freddie Mac loan, with a 7-year term. The seller of the property is Waterton, which purchased the asset in 2012 from JP Morgan Asset Management for $61.3 million.
Located on a 22.3-acre site at 15801 S. 48th St., Andante offers one-bedroom and two-bedroom units with high ceilings, high-speed internet and full-size washer/dryers. The community encompasses 32 three-story buildings. Amenities include a fitness center, clubhouse, three swimming pools and a spa. Additionally, the asset built in 1999 features full covered parking, semi-private entries, outside storage, fire sprinklers and private balcony/patios in selected units.
The community is situated in close proximity to Interstate 10 and State Route 202, the suburb’s location at the foothills of the South Mountain Park providing a convenient escape to more than 50 miles of hiking, biking and horseback riding trails. Andante offers easy access to multiple retail centers, including Lakeside Plaza, which is one mile west, as well as the Ahwatukee Foothill Towne Center. Ahwatukee is home to the largest concentration of technology jobs in Arizona, the corridor including approximately 25,000 jobs at companies such as Intel, Bank of America, Wells Fargo, PayPal and Microchip. Intel recently announced the opening of a state-of-the-art semiconductor production facility at its Ocotillo Campus, which is expected to add more than 3,000 new jobs, the location being approximately 12 minutes southeast of Andante.
The new owner plans to renovate the clubhouse to offer top of the market amenities. Interiors updates will include new hard surface countertops, appliances, flooring, painting, lighting fixtures and plumbing fixtures. The renovated units will still be priced materially below new construction rents. Madrona Ridge Residential, an affiliate of Security Properties, will hold the management services. Currently, Andante has an occupancy rate of 92.5 percent.
“Ahwatukee has been a target submarket for us for years. With excellent schools and demographics, plus proximity to high-paying jobs, all of the fundamentals were in place at Andante for us to implement our value-add reposition program,” said Davis Vaughn, director at Security Properties, in a prepared statement.
Images courtesy of Security Properties