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TruAmerica Multifamily Continues to Build Its Phoenix, AZ Portfolio with Acquisition of Two Tempe Communities for $67.3 Million

Highland Park in Tempe AZ

Los Angeles, CA — TruAmerica Multifamily, in joint venture with an institutional capital partner, has acquired a two-property, 472-unit apartment portfolio in Tempe, AZ for $67.3 million ($142,585 per unit) increasing its local portfolio to more than 2,400 units.

“We continue to be net buyers in Phoenix, and Tempe in particular,” said TruAmerica Director of Acquisitions Chris MacLeod.  “Nearly six out of 10 residents in Tempe are renters making it the highest propensity to rent-vs-own submarket in Arizona.  Despite the robust population and job growth, not much product has been added to the inventory.  What has been built, is higher priced mid- and high-rise development, out of the reach of the majority of the area’s renter population.   This has created a severe supply/demand imbalance and an extremely competitive investment environment. In the end, it was our local relationships and reputation for execution that was key to acquiring the portfolio,” said MacLeod.

The portfolio is comprised of 276-unit Highland Park and 196-unit Park View, located within a block of one another near the I-10 and Baseline Road, one of the major east/west arterials in Tempe.  Each low-density garden style development was built in the early 1980s and feature one-, two- and three-bedroom apartment homes.  Each community is highly amenitized with resort style pools, fitness centers, clubhouses and recreational areas.  The properties are within a 20-minute commute from three major employment hubs: Sky Harbor, Downtown Tempe, and Papago, which accounted for more than 50 percent of the job growth experienced by the Phoenix metro from 2017 to 2018.

With the majority of apartment units still in their original condition, Highland Park and Park View represent a strong value-add opportunity for TruAmerica.   TruAmerica will initiate a significant capital improvement program across the portfolio including upgrading apartment interiors, renovating all community amenities and refreshing exteriors and landscaping to meet the demands of today’s renter.

The acquisition was leveraged with favorable financing through Freddie Mac’s Select Sponsor Program originated by the CBRE Capital Markets team led by Vice Chairman Brian Eisendrath.

Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch from CBRE’s Phoenix office brokered the transaction.




The Place at Rock Ridge in Oro Valley Fetches $39.5 Million

Rock Ridge Apts., 10333 N Oracle Rd., Oro Valley, AZ

TUCSON, Arizona — Scottsdale-based MC Companies (Ross McCallister, principal), a real estate investment, management, development and construction company sold 319-units at Rock Ridge Apartments at 10333 N Oracle Road in Oro Valley to a private investment group from Newport Beach, CA, Springwood Investors, LLC; its first investment in Tucson.

The property commanded a sale price of $39.5 million ($123,824 per unit). This is the second highest sale price for a multifamily property in the Tucson region this year.

The acquisition the buyer with a solid investment opportunity. Seller had made enhancements since buying it with increased rents. The property was 96% occupied when it sold.

The property consists of one-, two- and three-bedroom units. The 226,880-square-feet (built 1995) is in 26 buildings on 17.77 acres adjoining Oro Valley Country Club Golf Course.

Unit amenities include air conditioning, alarm, balconies, cable ready, ceiling fan(s), dishwasher, wood burning fireplace, intrusion alarm, microwave, oversized closets, mountain / golf course views, washer & dryer in unit, garbage disposal, and refrigerator.

Community amenities include business center, clubhouse, covered parking, a dog park, emergency maintenance, extra storage, fitness center, garage, green community, high speed internet access, hot tub, playground, public transportation, two swimming pools, trails (bike, hike & jog), corporate suites, pet friendly. Special features include disability access, furnished units available, short term available,

Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch with CBRE’s Phoenix office in cooperation with Mike Sandahl in CBRE’s Tucson office handled the transaction on behalf of the buyer and seller.

For additional information, the CBRE Tucson office can be called at 520.790.8100 and the CBRE Team in Phoenix can be contacted at 602.735.5555.

To learn more, see RED Comp #6311.




Sale of 376-Unit Fairways at Cave Creek Apartment Community

Fairways at Cave Creek, 2140 W. Thunderbird Rd., Phoenix, AZ

Phoenix, Arizona CBRE announced the sale of Fairways at Cave Creek, a 376-unit value-add multifamily community, located at 2140 W. Thunderbird Rd. in Phoenix. Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch with CBRE’s Phoenix office represented the seller in the transaction. The buyer is Los Angeles, California-based Tides Equities, a commercial real estate investment firm specializing in Class B and core plus multifamily properties located across the western U.S.

“Fairways at Cave Creek presented an attractive value-add opportunity, centrally located in North Phoenix,” said CBRE’s Pesch. “The community has a quiet setting adjacent to Cave Creek Golf Course. At the same time, residents benefit from immediate access to Interstate-17, which connects to major employment and retail destinations in the North Valley.”

Built in 1981, Fairways at Cave Creek features a desirable low-density site plan with abundant common area amenities including two swimming pools and spas, fitness center, resident clubhouse, picnic areas with barbeque grills, and an onsite laundry facility. Studio, one-, two- and three-bedroom floor plans have well-appointed kitchens, walk-in closets and private patios/balconies.