29th Street Capital (29SC) acquired two more multifamily communities in Phoenix, Arizona’s thriving East Valley region in March. The firm acquired Williams Landing Apartments, a 72-unit multifamily community on March 25. Village Green Apartments, a 108-unit multifamily community, entered the portfolio March 31.
The firm plans significant upgrades at the communities, which are near major roads that provide access to the many healthcare, technology, aerospace and tourism employers across the East Valley.
Both are near airports – Phoenix Sky Harbor International for Village Green, and Phoenix-Mesa Gateway for Williams Landing – allowing easy air travel options.
“With new economic activity and job opportunities throughout the East Valley, 29SC believes the Phoenix metro area is poised for continued growth,” said Dusty Eddy, 29SC’s Vice President of Acquisitions.
“Developments such as Eastmark speak well for the Gilbert area, and the tech and education sectors are strong in the south Tempe/Mesa area. We hope that strategic improvements and proactive management at the newly-acquired communities will attract long-term residents seeking moderately-priced quality apartments in this booming area.”
29SC will invest roughly $350,000 in value-add improvements at Williams Landing, and $600,000 at Village Green. Work begins soon on upgrading the communities’ amenities, exteriors and landscaping. Completion is expected in September. The firm will install new kitchen appliances, plumbing fixtures, lighting and flooring in the apartments over time.
Williams Landing is just south of Loop 202, in the newly-designated Power Knowledge Corridor, which includes several universities and high-tech businesses. The address is 5850 S. Power Rd. in Gilbert.
Village Green is in Mesa’s Fiesta District, the city’s second largest employment center, just east of Loop 101 and just north of Hwy 60. The address is 1045 S. San Jose St., Mesa, Ariz.
The sellers in both cases were private ownership groups.
29SC has now acquired 10 multifamily communities in eight months. This includes four Phoenix-area acquisitions – totaling 478 units – in four months. In December 2014, the firm acquired two multifamily communities in Mesa: The Brittany and Sierra Madre. The firm is actively pursuing additional multifamily opportunities throughout the U.S. It will continue to target smaller value-add deals which are below the institutional radar, offering investors above market returns.