Sares Regis has acquired its third Arizona property through its Fund III, focused on communities in high-growth, supply-constrained markets in the West.
According to Yardi Matrix data, Sares Regis purchased Mountain Park Apartments for $54.3 million from Caspian Properties with the help of a $42 million loan from Heitman.
Located at 4221 E. Ray Road in Phoenix, the two-story property was built in 1994 with a wood frame construction, stucco siding and tile roofing. The 240-unit multifamily community offers one-, two- and three-bedroom apartments with amenities including two swimming pools and spas, outdoor picnic areas with barbecues, a fitness center and a clubhouse that will receive minor upgrades.
According to Yardi Matrix data, Mountain Park Apartments is 95.8 percent occupied with its residents paying an average rent of $1,398. The previous owners, Caspian, purchased the Arizona property from Kunz Investments in 2017 for $40.4 million, according to Yardi Matrix data.
The new ownership will tackle interior renovations of the units to update them into a more contemporary layout. The interior upgrades will include new solid surface countertops and backsplashes, cut-down bar tops, new plank vinyl flooring, new paint for the cabinet and walls, and updated hardware, sinks and lighting.
TARGETING TIGHT MARKETS
Previously, Sares Regis acquired the 202-unit Desert Parks Vista in Scottsdale, Ariz., a resort-style community that was left in good condition. And in August, the company sold their 144-unit property Salado Springs in Tempe, Ariz. to a private investor.
According to the company, its Fund III closed with $328.6 million in equity commitments, which they are using to acquire and reposition multifamily properties in western markets with high growth but tight supply.
According to Yardi Matrix’s fall report on the Phoenix market, developers are keeping busy with more than 15,000 units underway with another 45,000 in the planning and permitting stages. But the market is growing as the metro saw 60,500 more jobs in the last 12 months ending in June and rents increased 6.1 percent year-over-year through September. The report added that rents would likely grow 6.3 percent for the entirety of 2019.