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.




NorthMarq Multifamily sells Urban 188 Apartments for $17 Million

1601 West Camelback Rd., Phoenix

Phoenix, Arizona – The 188-unit Urban 188 apartments, located at 1601 West Camelback Road in Phoenix, Arizona, sold this month for $17 million ($90,425 per unit)

The NorthMarq Multifamily team of Bill Hahn, Trevor Koskovich, and Jesse Hudson represented both the seller and the buyer in this transaction.

Urban 1601 Property LLC, of Phoenix, Arizona, was the buyer.

“Urban 188, recently renovated in 2017, features upgraded interiors, a remodeled leasing office, and an abundance of contemporary amenities,” says Hudson. “Acquiring a clean and turn-key asset allows the buyer to spend little on capital improvements and benefit on in-place cash-flow. “Hudson also noted that the property’s proximity to the light rail will likely improve property values as it encourages redevelopment and gentrification of the surrounding areas.

Urban 188 apartments, built in 1970, comprises 188-units situated on 22.30 acres. The community is a blend of 57 percent studios units, 42 percent one-bedroom, units and 1 percent two-bedroom units. The property, located on the south side Camelback Road east of 17th Avenue, is near manufacturing and warehousing employment along Interstate 17. Urban 188 is also located along the Metro light rail line with a station located just two blocks west at the intersection of 19th Avenue and Camelback Road, providing easy access to downtown Phoenix, Tempe and Mesa.  The immediate neighborhood surrounding Urban 188 comprises a mixture of single-family homes, multifamily projects, and commercial developments.

1601 W. Camelback Rd. LLC, of Las Vegas, Nevada, was the seller.




ABI Brokers Apartment Sale for $16.78M in Desirable North Paradise Valley Submarket

Seventeen 805 Apartments

PHOENIX, ARIZONA — ABI Multifamily, the Western U.S.’s leading multifamily brokerage and advisory services firm, is pleased to announce the $16,780,000 / $121,594 per unit sale of the Seventeen 805 Apartments located in Phoenix, Arizona.  Built in 1984 and recently renovated in 2016/2017, the property is of wood frame/masonry construction with pitched composition shingle roofs.

The unit mix consists of a single one-bedroom / one-bath unit measuring 596-square-feet, (3) two-bedroom / one-bath units measuring 980-square-feet, and (134) two-bedroom / two-bath units ranging from 980- to 1,050-square-feet. Each unit is individually metered for electricity and has individual hot water heaters. Seventeen 805’s apartment units are equipped with air conditioning / heating, balcony / patio, ceiling fans, large closets, hard surface type flooring, and eat-in kitchens with dishwasher, garbage disposal, range / oven, and refrigerator. Select units offer in-unit washer / dryer and/or private enclosed backyards. The community also provides its residents with two sparkling swimming pools, three newly renovated laundry facilities, fitness center, a barbeque / picnic / dog park area, and a children’s playground. Among the property’s recent capital improvements are fully renovated exterior and common areas, as well as, select interior renovations.

“Seventeen 805 is located near the SR-51 and the 32nd Street Redevelopment Corridor. The Seller, FPA Multifamily, did an amazing job in renovating the exterior, common areas and a majority of the interiors,” states Rue Bax, Senior Managing Partner at ABI, and co-lead broker for the seller in this transaction along with Alon Shnitzer, Senior Managing Partner.  “The Buyers, Dalan and VM Management, are both experienced Arizona multifamily investors and were drawn to Seventeen 805’s desirable unit mix, low density garden style living and strong overall economic fundamentals,” states Alon Shnitzer.

The Buyer was a Joint Venture between New York-based Dalan Management and Arizona-based VM Management.  The partnership owns and manages real estate with a focus on improving and adding value to multifamily and commercial properties.  Dalan’s portfolio includes residential properties in Manhattan, Brooklyn, Queens, the Bronx, Washington DC and Phoenix, Arizona with additional commercial holdings in Manhattan. VM’s portfolio consists of multifamily assets in the greater Phoenix area.

The Seller, FPA Multifamily, LLC is a private equity real estate firm focused on the acquisition, renovation and management of both core plus and work force housing apartment communities.  Founded in 1985, FPA has owned over 100,000 apartment units valued at over $10.0 billion.  FPA is currently investing through its value-add focused FPA Apartment Opportunity Fund VI which will acquire approximately $1.8 billion of assets and its core plus focused FPA Core Plus Fund III which will acquire approximately $900 million of assets.  Headquartered in San Francisco, FPA also has offices in Irvine, Portland, Denver, Minneapolis, Dallas and Atlanta.  For more information please visit www.fpamf.com.

The multifamily brokerage team of Rue Bax, Alon Shnitzer, John Kobierowski, Eddie Chang and Doug Lazovick at ABI Multifamily represented the buyer and seller in this transaction.