Phoenix-Area Portfolio Trades for $67M
- Dec 26, 2018
A joint venture between TruAmerica Multifamily and an institutional capital partner has acquired a two-property portfolio in Tempe, Ariz. for $67.3 million.
“The appeal of this portfolio was a combination of three factors; location, quality, and size,” Chris MacLeod, TruAmerica’s director of acquisitions, told MHN. “The South Tempe location (specifically the 10/60 interchange) is one we already own in and feel confident in the fundamentals. The seller, who we know well, did a great job on the exteriors and deferred maintenance. They also proved out an interior renovation scope that the tenants really embraced, which we will continue.”
The portfolio comprises the 276-unit Highland Park community and Park View, which totals 196 units. The two properties are within one block of each other near Interstate 10 and the thriving Baseline Road.
Both properties were constructed in the early ’80s, offering one-, two- and three-bedroom units, and are highly amenitized, boasting resort style pools, fitness centers, clubhouses and recreational areas.
A Thriving Phoenix Metro
Highland Park and Park View are only 20 minutes away from major employment hubs, the Sky Harbor, Downtown Tempe and Papago, which accounts for more than 50 percent of the job growth experienced by the Phoenix metro from 2017 to 2018.
The South Tempe, 10/60 interchange area provides tenants easy access to Phoenix’s largest job centers and great retail options.
“TruAmerica believes in providing quality work force housing in our country’s top performing MSA’s and this portfolio checks those boxes,” MacLeod said. “We already own two other properties in this immediate submarket and understand the appeal this has to our tenants and their families.”
With the acquisition, TruAmerica Multifamily has increased its Phoenix-based portfolio to more than 2,400 units.
Since a large percentage of the units are still in their original condition, the new owner will initiate a significant capital improvement program across the portfolio including upgrading apartment interiors, renovating all community amenities and refreshing exteriors and landscaping to meet the demands of today’s renter.
CBRE’s Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch brokered the deal.
In October, TruAmerica Multifamily partnered with Investcorp to acquire Country Lake, a 253-unit community in Salt Lake City for $45.7 million, expanding the company’s portfolio in the market to 1,595 units.
Image courtesy of TruAmerica Multifamily