Passco, Insite JV Buys Tempe Apartments for $25M
- Aug 22, 2014
Tempe, Ariz.—Passco InSite LLC, a joint venture between Passco Cos and InSite Investment Realty, has acquired Ovation at Tempe for $25.85 million. The property is a 270-unit, Class B garden-style apartment community.
Ovation at Tempe, at 4502-4505 S. Hardy Dr., features one- and two-bedroom units, as well as separate casitas and townhomes situated on about 16 acres. Units range in size from 700 square feet to 980 square feet and feature walk-in closets and private patios or balconies. Common amenities include a fitness center, two swimming pools, two spas, tennis court, children’s playscape, picnic area with barbecue grills, and covered parking.
The Passco InSite partnership plans to hold the property for three years. During that period, the JV will undertake value-add improvements to drive rent growth for the asset. Planned renovations include upgrading unit interiors, constructing additional carports, and enhancing the property’s exterior and common amenities, according to Passco.
The property, which was originally built to condo specifications, has an advantageous residential setting, says Passco Cos. CEO Bill Passo. For one thing, it’s situated against open space to the west and east, with no adjacent apartment properties. Also, Ovation at Tempe has one of the lowest unit densities in Tempe, at 16.5 units per acre.
Tempe is a growth market. The market posted positive absorption and a 3.7 percent apartment vacancy in the first quarter of 2014, according to Passo, and 3.5 percent rental growth is forecasted by the end of the year.