Sterling Real Estate Partners, a Scottsdale, Arizona based real estate investment company, recently acquired Pennytree Apartments in Mesa, Arizona.
Originally built in the 1960’s, the 146-unit property is strategically situated at 232 S. MacDonald, which is less than a mile from the growing number of eateries, breweries and local retail options in Downtown Mesa.
“This multi-family apartment community is positioned to serve the growing need for housing in close proximity to Mesa’s energized downtown area,” said Sterling Real Estate Partners President, David Zeff. “This is our 10th transaction in Phoenix, and we are excited to renovate and reposition the property to serve the expanding community of Mesa.”
Its latest acquisition brings Sterling’s Arizona investment activity to more than $120 million. The property’s location is within two blocks from light rail and public transit, making it an ideal place for young professionals, commuters and students. In addition, ASU at Mesa City Center, which will aim to be a world-class hub for digital innovation education, is scheduled to open in the Fall of 2021. The 188,000 SF academic building is expected to draw more than 750 Arizona State University students, faculty and staff contributing to the need for quality multi-family options in Mesa.
At the time of transaction, the property remains 99 percent occupied. In the coming months, Sterling’s management team will implement its strategic capital improvement business plan. Pennytree Apartments will be repositioned and renovated to include repainting, landscaping, enhanced curb appeal and renovating the clubhouse, pool, common areas and unit interiors with a modern appearance.
The brokers handling the transaction were Ric Holway (Senior Managing Director), Dan Cheyne (Senior Director), and Luke Donahue (Managing Director) from Berkadia.