CHANDLER, AZ-A San Mateo, CA-based buyer is continuing its push in the market, snagging the 264-unit Allegro at Foothills Gateway from a Midwest seller for $32.7 million. The new owner plans to invest $4,000 per door into upgrades and increase rents in the 10-year-old complex.
Sean Cunningham, vice chairman with CB Richard Ellis Inc. in Phoenix, says Pedcor Cos. of Carmel, IN received 14 offers from REITs and private investors for the class A complex. He says Acacia Capital Corp. claimed the asset at 4411 E. Chandler Blvd. because of a quick turnaround and active track record. "Acacia's offer was actually similar to that of a couple of other firms, but their due diligence process was processed in about half the time as the others," Cunningham tells GlobeSt.com. He and CBRE vice chairman Tyler Anderson and first vice president Jack Hannum plus Greg Campbell of Landmark TCN in Phoenix represented the seller.
Cunningham says Acacia's typical strategy is a long-term hold and he doesn't foresee the Allegro at Foothills deviating from the blueprint. The 91%-occupied complex has one-, two- and three-bedroom units, ranging from 564 sf to 1,190 sf. Rents are $750 to $1,175 per month.
In recent months, Acacia has acquired the 224-unit Windemere Apartments at 2020 East Inverness Ave. in Mesa and 402-unit Willow Creek Apartments at 2030 E. Broadway Rd. in Tempe. "They're always on the look out for new opportunities," Cunningham says.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.