Triumph Properties has planted a flag in Phoenix with the $49.5 million acquisition of Deer Creek Village, a 308-unit apartment community on the city’s north side.
The purchase marks Triumph Properties Group’s first foray into the Phoenix multifamily market. The Los Angeles-based real estate investment, management and development firm purchased the 1980s-era community with plans to fully renovate the property.
The 11.2-acre property compriese 13 two- and three-story buildings and was developed in 1985 by Evans Withycombe Residential Inc., which was sold in 1997 to Equity Residential Properties Trust. Equity Residential sold the property in June 1997 to TheoPacific Corp. for $13.6 million, according to Yardi Matrix data.
Institutional Property Advisors, a division of Marcus & Millichap, represented the seller, which it identified as a private family/operating partner, and procured Triumph Properties Group as the buyer. IPA Senior Managing Directors Cliff David and Steve Gebing handled the transaction for IPA.
Steven Feder, Triumph Properties Group president, said in a prepared statement that the firm competed with 30 other offers in the deal. Noting the property was well designed and well maintained, he called the community a rare opportunity for the market. Feder added the firm plans to secure bridge financing and look for capital partners to begin implementing the renovations, which are expected to include both apartment and common area upgrades.
The property has one- and two-bedroom floorplans with rents that range from $871 to $1,147, according to Yardi Matrix data. The community has a fitness center, clubhouse, playground, three swimming pools, two spas and a total of 450 parking spaces. Units include washer/dryers in all apartments with fireplaces in select units. Located north of Loop 101/Agua Fria Freeway at 31st Street, the property has freeway visibility and direct access to two of the metro’s largest employment corridors, Deer Valley and Interstate 17.
More Expansion Planned
As a long-term owner and investor, Triumph Properties Group plans to make between $100 million and $150 million in acquisitions over the next 12 months and is seeking multifamily properties across all major western United States markets, including Southern California; the Pacific Northwest; Phoenix; Salt Lake City; Denver; Las Vegas, Nev.; and Dallas and Austin in Texas.
In March 2017, Triumph entered the Denver market with the acquisition of Villas at Holly, a 143-unit apartment community in Centennial, Colo., for $26.3 million from Kennedy Wilson.