TEMPE, AZ—Passco InSite, LLC, a joint venturebetween Passco Companies, LLC and InSiteInvestment Realty, has acquired the 270-unit class Bgarden-style multifamily community Ovationat Tempe for $25.85 million. According to BillPasso, CEO and founder of Passco Companies, this new jointventure is an extension of a 20-year relationshipwith long-standing track record, market expertise and multifamilyinvestment experience.

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According to Passo, investors will have the opportunity toinvest in the Ovation at Tempe property through crowdfunding, aswell as through the broker-dealer community.

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“This is a strong, value-add investment opportunity in a marketthat is in a proven recovery,” explained Passo. “The Tempesubmarket posted positive absorption and a low3.7% vacancy in the first quarterof 2014, and a 3.5% rental growth is forecasted by the end of theyear.”

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In addition, Tempe's market fundamentals are rebounding rapidlyaccording to Passo, who noted that the state of Arizona is on trackto rank first in the nation in future job growth, projecting athree percent rise annually over the next fiveyears.

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“This projected job growth will drive deep demand for qualityhousing, which will bolster the profitability of this investmentover our hold period,” he explained.

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The Passco InSite partnership plans to hold the property forthree years. Under this ownership, value-add improvementswill be implemented, which will drive rent growth for the asset,according to Passo.

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Planned renovations include upgrading unit interiors,constructing additional carports and enhancing the property'sexterior and community amenities.

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The property, which was originally built to condospecifications, is unique in its residential setting, according toPasso.

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“The community is situated against open space to the West andEast, with no adjacent apartment communities,” he said. “Inaddition, this property has one of the lowest unit densities inTempe at 16.5 units per acre. These factors,along with the community's easy freeway access and close proximityto retail, recreation, employment and educational centers make it ahighly desirable investment property.”

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Ovation at Tempe is located at 4502-4505 S. HardyDrive in the city of Tempe. The community features one-and two-bedroom apartment units, as well as separate casitas andtownhomes situated on approximately 16 acres.

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Units range in size from 700 to 980 square feetand feature walk-in closets, private patios or balconies andstackable washers/dryers.

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Community amenities include a state-of-the-art fitnesscenter, two swimming pools, two spas, tenniscourt, children's playscape, picnic area with barbeque grills, andcovered parking.

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Passco Companies, LLC is a nationally recognized market leaderin the acquisition, development, and management of multi-family andcommercial properties throughout the US.

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David Phillips

David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.