Security Properties Nabs $59M Phoenix Community
- May 24, 2018
Security Properties has shelled out $59 million for its ninth community in the Phoenix market. The firm collaborated with Oaktree Capital Management for the purchase of the 254-unit Pavilions on Central. Crow Holdings sold the property. According to data provided by Yardi Matrix, the transaction was subject to a $41 million Freddie Mac loan due in 2028 and originated by CBRE Capital Markets.
Pavilions on Central is located in Phoenix’s Midtown neighborhood, at 1 W. Campbell Ave. The community comprises 92 one-bedroom, 108 two-bedroom and 54 three-bedroom units, ranging from 807 to 1,366 square feet. More than 70 percent of units are either lofts or townhomes, with direct access to a garage. Common-area amenities at Pavilions include:
- fitness center
- business center
- swimming pool
- 400 parking spaces
The location offers immediate access to public transportation, in the form of a light rail station situated across the street. Access to downtown Phoenix, multiple employers as well as entertainment, shopping and dining destinations is facilitated by proximity to Central Avenue. Carl T. Hayden VA Medical Center is situated just a mile away.
“Phoenix continues to have a very strong outlook for apartment fundamentals. Pavilions is a great opportunity for us to expand our income-producing, core-plus business,” said Jared Lazarus, managing director at Oaktree, in prepared remarks.
Prior ownership implemented a full renovation of the property between 2013 and 2016, with all units receiving high-end improvements. Security Properties plans to fully renovate the bathrooms, matching the previous high-end upgrades. Quartz countertops, mirror surround, plumbing and lighting fixtures, and kitchen USB connections are planned. Exterior renovations are also on the horizon, including new paint, packaging system, a new fitness center, as well as a game room and lounge area.
“Pavilions on Central was appealing to us because of the combination of the rare townhome-style product type and the location on a light rail. As Midtown continues to develop, these long-term competitive advantages should create value for our investors,” said Davis Vaughn, senior director at Security Properties, in a prepared statement.
Pavilions on Central will be managed by the owner’s affiliate, Security Properties Residential.
Photos courtesy of Security Properties