845-Unit Phoenix Portfolio Changes Hands
- Dec 04, 2018
Greystar has acquired the Acacia portfolio, three multifamily properties located in Phoenix’s affluent East Valley, on behalf of its real estate funds.
The portfolio comprises Chandler Court and River Ranch, both in Chandler, Ariz., and Vista Montana in Gilbert, Ariz. After the sale, Chandler Court and Vista Montanta have been renamed into Avana Chandler and Avana Gilbert, respectively.
“Phoenix continues to screen as a top performing market across the country in terms of fundamentals, and rising construction costs have made it difficult to add new supply in these highly desirable Chandler and Gilbert submarkets,” Kevin Kaberna, Greystar’s executive director and leader of its U.S. Investment platform, said in prepared remarks. “We expect that our proven value-add strategy combined with robust job growth and limited supply will drive tremendous value.”
Located at 3800 W Chandler Blvd., Avana Chandler offers one-, two- and three-bedroom units, all equipped with washers and dryers. River Ranch Apartments are located at 6152 W. Oakland St. and offer six different floor plans of one-, two- and three-bedroom units. Both properties are situated nearby South Mountain, the Chandler Fashion Center and the Chandler Center for the Arts.
Avana Gilbert is located at 3225 E. Baseline Road and features one- and two-bedroom units with airy spaces, natural light and rich design elements.
Built in the late ’80s, the three properties in the portfolio feature original interiors. Greystar plans to implement an extensive renovation strategy to enhance the units and communities overall. Planned changes include adding hard-surface countertops, stainless steel appliances, new cabinet doors and upgraded lighting, plumbing and hardware packages to the units. Greystar will also upgrade all common areas and amenities, including the fitness centers, clubhouses, business centers, community gardens and pool and spa areas.
According to Karerna, the deal allowed Greystar an opportunity to purchase high-quality assets in rapidly growing, low-supply submarkets and apply its value-added strategy with these changes.
Fast-Growing Metro Area
The Phoenix metro area has always been a hot market for Greystar. In fact, the company owns nearly 970 units in the area now and manages another 24,560 units.
According to Greystar data, the market is showing heavy demand thanks to Phoenix’s explosive growth. Figures estimate more than 60,000 new jobs will become available in the area this year.
Many of these new jobs will be offered in the Chandler and Gilbert submarkets, further making this deal appealing. The Phoenix metro’s population growth is projected to continue to drive demand for housing and increasing rents in the near future.
In November, Greystar opened Elan Rosemary, a 286-unit luxury community in Sarasota, Fla. The property started pre-leasing in December 2017 and is currently 61 percent occupied/pre-leased, Yardi Matrix data shows.
Image courtesy of Yardi Matrix