Denver-based Consolidated Investment Group (CIG) recently announced the $38.7 million acquisition and planned refurbishment of a 225-unit, 640-bedroom student housing property located near Arizona State University in Tempe. Renamed Regents on University, the property formerly known as Block 1949 will be renovated before the beginning of the new school year.
As reported by the Business Real Estate Weekly of Arizona, the acquisition was made by three tenant-in-common entities. Two of them, Regents Tempe RE L.L.C. and Regents Tempe RE II L.L.C. were sponsored by CIG. The former paid $21.38 million for 5 percent ownership interest, while the latter paid $11.5 million for an approximately 30 percent stake.
The third entity, CWS 1949 L.L.C, formed by CWS Capital Partners LLC acquired the remaining interest for $5.8 million. The seller, Block 1949 LLC, was assisted in the transaction by Hanover Street Capital, an advisor to Deutsche Bank, while John Cunningham and Charles Steele of Jones Lang LaSalle in Phoenix served as brokers.
“This property presents a unique opportunity for us to add value through improved management, capital improvements, and a complete re-branding of the building,” said CIG’s Vice President of Real Estate, Tim Bertoch. “We are focused on immediately implementing our improvement plan which will establish Regents on University as one of the premier student living experiences in Tempe.”
The company’s renovation plan includes new pool furniture with a full outdoor kitchen/bar area, a new game room, an added study room with new computer and printing stations, a community fire pit with seating area and the addition of a new fitness room.
Photo Courtesy of Consolidated Investment Group