PHOENIX-Abacus Multi-Family Partners I LP made its entry into the marketplace through a $37-million acquisition of the 312-unit Renaissance at South Mountain, which was renamed Arboretum at South Mountain. The New York City buyer plans an additional $1-million capital investment and has hired local management company Mark-Taylor Residential Inc. to help with clean-up, stabilization and maintenance of the seven-year-old asset.
Gregory Lyden, executive vice president with fund sponsor Abacus Capital Group LLC says the buy from Chason Properties Inc. in Buffalo represented a traditional value-add play. He notes that the complex at 15251 S. 50th St. offers terrific upside through physical upgrades and rent increases.
Renovations are expected to start immediately, and should be completed within the next year. As to whether Abacus will hold the asset, "we generally like to create value, then harvest it, but what we do with it will depend on the market conditions at the time we complete," Lyden tells GlobeSt.com. "Whether we sell it or refinance it will depend on the market." He adds that Mark-Taylor Residential was selected for management of the 86%-occupied complex because of that company's reputation and brand value in the market.
Lyden says the complex represents the $110-million fund's second acquisition since its May launch. The Arboretum at South Mountain buy follows that of the 352-unit Eagle Ridge Apartments in Monroeville, PA, which was acquired for $21.7 million in July 2007.
Lyden comments that Phoenix continues to be one of the fund's target markets for future acquisitions. Though nothing local is in the pipeline, closings in Sacramento and Austin, TX are scheduled to take place within the next 60 days.
Situated on 12 acres, Arboretum at South Mountain has one-, two- and three-bedroom units ranging from 690 sf to 1,300 sf at an average monthly rent of $908. Land Banking & Development Inc. in Williamsville, NY acted as consultant for Chason Properties. Steven Goldstein and Jason Buxbaum of Amercon Realty Services Inc., located in Scottsdale, represented Abacus.
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