Diversified International, Alliance Residential Buy Tempe M-F Asset for $15M
- Oct 26, 2013
In a $15 million deal, Diversified International Partners and Alliance Residential acquired Dorsey Place, an 84-unit, condominium-style apartment building in Tempe, from Stratford Partners and Pathfinder Partners.
Built in 2007, the four-story, 96,400-square-foot building is located on East University Drive, less than a mile from Arizona State University and near several major corporate projects under construction. It offers two-bedroom and three-bedroom apartment homes with upscale finishes, granite countertops and stainless steel appliances. Community amenities include underground parking, a heated swimming pool in a central courtyard and a resident clubhouse.
San Diego-based Stratford Partners and Pathfinder Partners were represented by Transwestern’s multifamily team in Phoenix, led by Vice Presidents Jack Hannum and Bret Zinn and Financial Analyst John Drowns.
Diversified International and Alliance Residential, both of Phoenix, plan to add value through such improvements as converting vacant first-floor retail space into residential units, adding a fitness center and renovating common-area amenities.
“With State Farm currently building 2 million square feet of office space on nearby Tempe Town Lake, there is growing demand for multi-family residential units here,” commented Hannum in a statement. “So in terms of timing, this is a win-win for the Dorsey Place buyers and sellers, as well as the City of Tempe.”
The North Tempe/University submarket led the area in rent growth during the past year, with average prices rents climbing 12 percent to $1,026 per month. According to Marcus & Millichap Real Estate Investment Services Inc., nearly 1,600 units were brought into service in the past four quarters, which contributed to the spike in rates.
Demand for apartment assets remains strong throughout metropolitan Phoenix, with 147 apartment property sales completed in the 12 months ending October 2013, according to research by Pierce-Eislen. Sales increased 5 percent year over year compared to the same period in 2011-2012. Development is also picking up, with 36 properties and 7820 units currently under construction.
Photo credit: Transwestern