WWC Completes Phoenix-Area Acquisition
- Feb 13, 2018
Western Wealth Capital has bought Villatree, a 150-unit community in Tempe, Ariz. PEM Real Estate Group sold the property for $17.4 million. The transaction was subject to a $12.3 million Freddie Mac permanent loan, originated by Walker & Dunlop on behalf of WWC, due 2025. Marcus & Millichap brokered the transaction.
Villatree is situated near the full diamond interchange of Price and Red Mountain freeways, at 1750 S. Price Road. Formerly known as Villa Antigua, the community has been under PEM ownership since 2006. The 11 buildings comprise 72 one-bedroom and 78 two-bedroom units, which range in size from 465 to 1,000 square feet. Common-area amenities include two swimming pools, a basketball court, a playground and 307 parking spaces. As of December 2017, the property was 98 percent occupied, according to Yardi Matrix.
Villatree offers immediate access to major thoroughfares and transit lines such as Price Freeway, Red Mountain Freeway and the light rail stations on Apache Boulevard. Arizona State University can be reached in approximately seven minutes, while other major employers such as State Farm, Phoenix Sky Harbor Airport or Banner Desert Medical Center are also nearby. According to Yardi Matrix, the median household income within a five-mile radius is approximately $43,845, with an employed population of more than 180,000.
WWC plans to implement standard value-add strategies to the 1980-built Villatree, such as full unit renovations, amenity improvements and rent normalization toward market rates.
The acquisition represents WWC’s 39th transaction, of which 12 were made over the course of 2017. The company invested $210 million in acquisitions last year, totaling 2,568 units. Western Wealth Capital is the second-largest owner of multifamily assets in the Phoenix metro and it recently acquired a multifamily community in San Antonio, its third investment in Texas.
Image courtesy of Western Wealth Capital