Taurus Investment Holdings Buys Phoenix Community
- Jul 28, 2021
Taurus Investment Holdings LLC has acquired 544 Southern, a 136-unit Class B property in South Mesa, Ariz., for $31.1 million. Prospect Ridge was the seller of the metro Phoenix property, according to Yardi Matrix data.
Previously known as Penny Lane, the rebranded community marks the buyer’s fourth purchase in the Phoenix market over the past year.
Prospect Ridge bought the property for $14.3 million from Western Wealth Capital in 2019. The purchase was part of a 12-asset Arizona portfolio transaction totaling $211 million. The sale of 544 Southern was subject to an $11 million CMBS loan set to mature in 2026.
Built in 1985, the two-story asset occupies 114,824 square feet at 544 E. Southern Ave. The community features one- and two-bedroom apartments, as well as a fitness center, pool, spa and volleyball court. Additionally, residents have access to a barbecue area, a playground and 283 grade-level parking spaces. The new ownership plans to renovate the property.
Located in a transit-oriented area of Maricopa county, 544 Southern sits less than a mile north from US Route 60. Numerous dining and shopping venues surround the community.
Healthy market fundamentals
Following the acquisition, Taurus has expanded its Phoenix multifamily portfolio to more than 725 units. The metro’s average multifamily rent growth clocked in at 0.9 percent on a trailing three-month basis as of April, according to a recent Yardi Matrix report. The increase brought the average monthly rate to $1,316, while the national figure stood at $1,417, following a 50-basis point rise during the same period.
The average rental rate in metro Phoenix saw an 8.1 percent hike year-over-year through April, outpacing the U.S. average of just 1.6 percent. The metro’s reduced population density and low income-tax rates continue to attract companies to the area, further strengthening the multifamily market’s fundamentals.