San Francisco-based real estate company Hamilton Zanze (HZ) announced the recent acquisition of Tresa at Arrowhead for $47,000,000 ($130,556/unit). The 360unit Class B+ apartment community is located in Glendale, AZ, approximately 10 miles northwest of Downtown Phoenix.
Tresa at Arrowhead was built in 1998 and is 0.5 miles from the Arrowhead Towne Center and 1 mile from the vibrant P83 Entertainment District.
The P83 Entertainment District’s Peoria Sports Complex is used by the Seattle Mariners and San Diego Padres for spring training. The local economy is supported by diverse industries, including manufacturing, insurance, utilities, finance, construction, healthcare, retail, and hospitality. Major local employers include Blue Cross and Blue Shield of Arizona, Mayo Clinic, Arizona State University, Karsten Manufacturing, Amica Mutual Insurance, Arizona Power Services, Wells Fargo Home Mortgage, and Suntec Concrete.
HZ’s Managing Director David Nelson says of the acquisitions: “We are thrilled to purchase a pristine asset with access to 3,000,000 square feet of retail, the P83 Entertainment District, and 265,000 square feet of office across the street in a supply-constrained submarket of Phoenix.” HZ plans to execute a $1,620,000 capital improvement program, including unit upgrades and a clubhouse remodel. Property management will transition to Denver-based Mission Rock Residential.
As Phoenix apartments remain essentially full at around 95% occupancy, the metro’s annual rent growth accelerated to a nine-year high of 7.2% in Q1 2016 (source: MPF Research). HZ has purchased four multifamily assets, including properties in Colorado and Washington, in the first five months of 2016.