Colliers International in Greater Phoenix negotiated the sale of the 272-unit Casa Carranza Apartments, located at 1903 N. Country Club Drive in Mesa, Ariz., for $9.1 million, or $33,456 per unit.
SPL Real Estate & Management Company (“SPL”) of Denver acquired Casa Carranza in an all-cash transaction. The seller was Summit Equity Investments, Inc. (“Summit”), a Los Angeles-based real estate investment firm. Bill Hahn, Jeffrey Sherman and Trevor Koskovich of Colliers’ HSK Multifamily team represented both parties.
The community, which was built in 1979, was originally acquired by Summit in 2010; and Summit completed extensive remodeling in 2011. Most significant was the addition of a $1.5 million, 281-kilowatt solar power system, which covers 15,000 square feet atop new parking canopies with 1,004 high-efficiency solar panels. This is believed to be the largest covered-parking solar power system added to an apartment community in Arizona.
The solar system provides an annual utility savings of approximately $50,000, by replacing approximately 25 percent of total energy consumption with solar energy and generating more than 475,000 kW hours annually. The project takes advantage of the Salt River Project’s production-based renewable energy incentive program.
“Casa Carranza represented a highly-desirable investment opportunity for SPL Real Estate & Management Company,” said Koskovich with Colliers. “The solar power system drives real savings for the property and greatly enhanced the property’s value. Summit made other considerable investments in the property, improving the community’s infrastructure, renovating building facilities, and re-tenanting.” Koskovich adds that SPL will self-manage Casa Carranza and plans further improvements through streamlined operations and taking advantage of their property management expertise. This is SPL’s second multifamily acquisition in metro Phoenix, with plans to acquire additional multifamily assets.
Casa Carranza is a two-story complex consisting of 14 buildings on 7.5 acres with 126,600 net rentable square feet. The unit mix includes 104 studios, 166 one-bedroom and 2 two-bedroom apartments. Community amenities include two swimming pools, laundry facilities, shaded ramadas and covered parking. Renovations completed by Summit include a new playground, lighted basketball court and soccer field, dog park and exterior paint.