S2 Residential Pays $46M for Phoenix Community

Bridge Investment Group provided acquisition financing for the Class B, 320-unit multifamily asset.

Security Properties has sold FIVE46, a 320-unit Class B community near Phoenix, to S2 Residential for $46 million, according to Yardi Matrix. Bridge Investment Group provided the buyer with $42 million in financing for the deal. The asset last changed hands in July 2017 as part of a 1,276-unit, $97.5 million portfolio acquisition from Starwood Capital Group.

Located at 546 S. Country Club Drive in Mesa, Ariz., the asset is within 5 miles of the Red Mountain Freeway’s intersection with Loop 101, approximately 15 miles east of downtown Phoenix. Arizona State University’s campus in Tempe is 6 miles away, linked by the Valley Metro Rail system.

The property’s 21 buildings, completed in 1986, has a unit mix of one- and two-bedroom apartments, with floorplans between 708 and 949 square feet. Community amenities include a fitness center, two swimming pools, a volleyball court and covered parking. Yardi Matrix data shows the asset was 95.9 percent occupied in September, in line with the South Mesa submarket’s average of 96 percent.