Tides Equities continues its expansion in Phoenix. The company has closed on three properties totaling 590 units for a combined sales price of $120.2 million. Institutional Property Advisors facilitated the sale of the 137-unit Tides on West Dunlap, while Newmark handled the sale of the 179-unit Tides on East Cactus and the 274-Unit Tides on McDowell.
These purchases marked a milestone for the company, with Tides surpassing 50 sales within the Greater Phoenix area.
“Tides has remained active in the Phoenix market over the past couple of years. This year alone, we have acquired 19 properties in the Phoenix MSA, which accounts for approximately $1.2 billion in transaction volume,“ Sean Kia, co-founder & principal at Tides Equities, told Multi-Housing News.
The 137-unit community, formerly known as Villa Serena, sold for $32 million. According to Yardi Matrix, ZH Multifamily was the previous owner of the asset. The same data provider shows that Tides purchased the largest of the three assets from Prospect Ridge, for $59.6 million. Tides paid $28.6 million for the 179-unit community, which was previously dubbed Sierra Grande.
The new owner intends to invest a total of $13 million in capital improvements at all properties.
Tides on West Dunlap sits on 5 acres at 4221 W. Dunlap Ave. and features one- and two-bedroom floorplans averaging 859 square feet. Tides on East Cactus is located at 2645 E. Cactus Road in northeast Phoenix and provides studios and one-bedroom units. Situated at 4620 W. McDowell Road, Tides on McDowell includes studios as well as one- and two-bedroom units, with an average size of 607 square feet.
All three properties feature a range of amenities, including swimming pools and laundry facilities. Some of the communities also have picnic and barbecue areas, business centers, clubhouses, spas, fitness centers or playgrounds.
Favorable market conditions continue to drive demand across the Greater Phoenix area. Preliminary BLS data shows that unemployment hit 3.8 percent in September, a 90 basis-point month-over-month drop. The robust population growth is not only supporting rent increases, but also luring in investors.
“Tides continues to believe in the short- and long-term growth of Phoenix as it is forecasted to lead the nation in job growth over the coming years and is further aided by the accelerating demand by Millennials and Generation Z to relocate to cities within the Sun Belt,“ said Tides Co-founder & Principal Ryan Andrade.