Ted M. Kerr Jr., president and CEO of Concierge Asset Management, says the 88%-leased complex at 501 Sunrise Canyon Dr. is considered a class B-plus asset although it was completed in 2007. "Though this was newer construction, it was built without many of the higher-end amenities that some of the new construction as today," he says. "It's a great property and we're looking forward to bringing this to the class A level." The new owner is investing $3,000 per unit into upgrades. Work has just begun on interiors and exteriors, with completion expected to take three months.

Bobby Bull, managing director with Transwestern Phoenix, says the Corpus Christi, TX-based seller originally brought the asset to market when it was completed, but it kept falling out of escrow due to the credit crunch. He says Concierge was an ideal buyer because it had acquired the nearby 333-unit Sable Ridge Apartments at 330 Kitty Hawk Rd. Kerr says both Sunrise Canyon and Sable Ridge have been underwritten for a three- to five-year hold.

"I'd known Tom Cabibi [director of the company's western acquisitions] and Ted Kerr because they used to work in the Phoenix market," Bull tells GlobeSt.com. "We were able to work together on this to create a win-win situation." The seller's team included associate Matt Lockin, also with Transwestern Phoenix, and Alan Grilliette, managing director in the firm's San Antonio office.

The complex, situated on 4.6 acres, has one-, two- and three-bedroom units averaging 858 sf. The average monthly rent is $864.

Kerr says Concierge is continuing to focus on Texas' major markets and is edging up on closings for properties in Houston and Dallas/Fort Worth. He says feelers also are extended in Austin. "We're generally looking for workforce housing, middle-income, class B and C properties," he adds. "Sunrise Canyon was in the high B range and we liked the mid-income demos of that property."