GILBERT, AZ-Increasing its footprint in the metro, Residential Equity Partners of Portland, OR has acquired the 459-unit Gilbert Meadows Apartments for $31.95 million and 69-unit Granada Lakes in Tempe for $3.65 million. The separate transactions bring Residential Equity's total units to 1,172 in the marketplace, with more closings planned for early next year.
According to Residential Equity president David Butler, the company's goal is to acquire 2,500 units as the opportunity arises although the goal could be reached by mid-2007. "We have two other properties under contract right now in Phoenix and Tucson, totaling 500 units," he tells GlobeSt.com.
Residential Equity's MO is to acquire class B and C apartment complexes that are value-add opportunities. Butler estimates Gilbert Meadows Apartments at 275 W. Juniper Ave.--now renamed Springs at Gilbert Meadows--will require about $1.5 million for upgrades while a $400,000 investment will take care of improvements to Granada Lakes at 5701 S. Rural Rd.
The 92%-occupied Gilbert Meadows was sold by Parkside Partnership of Crystal Bay, NV in an off-market deal. According to Marc Huisken, senior vice president of Grubb & Ellis/BRE Commercial LLC's Phoenix office, the seller had owned the complex since opened in 1986.
"The seller wanted to dissolve the partnership, which had been in existence for more than 30 years," says Huisken, who brokered the deal for both sides. The seller has one more multifamily asset in the area, which is set to trade in January.
The 1970s-constructed, 98%-occupied Granada Lakes was sold by CanWest Partnership of Apache Junction. Ric Holway of Marcus & Millichap Real Estate Investment Brokerage Co. brokered the transaction.
In December 2005, Residential Equity acquired the 472-unit Bay Club at Mesa Cove Court at 2121 Main St., now called Midtown on Main Street. In midyear 2005, the buyer bought the 172-unit La Quinta Apartments at 3409 S. Rural Rd. in Tempe, which has been renamed to Paxton on Rural.
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