Chandler, Ariz.—Security Properties has acquired Arches at Hidden Creek, a 432-unit multifamily property in Chandler, Ariz., for $55 million. The deal means that the company now own five assets in the greater Phoenix market.
Arches at Hidden Creek is a garden-style apartment community originally developed in 1986. Seattle-based Security’s plan is a moderate value-add.
So far, 133 units have been upgraded throughout the property. Interior upgrades include faux wood flooring, baseboards, black appliances, faux granite countertops, light fixtures, ceiling fans and updated hardware and plumbing fixtures. The new owner said it will continue this rehab strategy by renovating the remaining 299 original units in a similar way.
Security Properties director Davis Vaughn tells MHN that the company’s “enthusiastic about lower-cost-of-living markets that can offer the amenities of the urban experience.” Phoenix, for instance, offers a high quality of life at a fraction of the cost of neighboring major MSA’s, especially those in California, he notes.
“With population and job growth projections far above the national average, we expect the attractiveness of Phoenix to only increase for both apartment dwellers and institutional investors going forward,” Vaughn adds. “With a basis well below replacement cost, we expect the property to produce outstanding risk-adjusted returns.”