ColRich Adds 225-Unit Park Meadow to Phx Portfolio

GILBERT, AZ-Upside potential and an upscale location encouraged San Diego-based ColRich to acquire the 225-unit Park Meadow Apartments from Equity Residential. ColRich paid $20.8 million for ownership rights to the class B-plus complex, effectively beating out more than a dozen other bidders that were also interested in the multifamily property.

Transwestern vice president Jack Hannum represented the Chicago-based seller in the commercial real estate transaction, and tells GlobeSt.com the deal was quickly accomplished. The entire process took around 90 days from start to finish. "It was quick in the sense that there wasn't a beat missed in the deal," Hannum comments. "As soon as it was under contract, ColRich was immediately underway with due diligence." It was that motivation that helped win ColRich the multifamily property located at 125 E. Guadalupe Rd. The transaction is ColRich's seventh in the Phoenix area. 

Hannum explains that the property's location, in an upscale market near many city parks and a junior high and elementary school, brought out the bidders – 15 in all -- as did the potential upside. Though occupancy of the 1980s-1990s complex stood in the mid-90s, interior unit renovations will allow ColRich to push rents over time. Hannum says ColRich will start interior upgrades within the next year, with renovations taking place over an extended period of time. ConAm Management Corp. is handling the multifamily property's management.

"This was an asset that was very stable and in good condition; plus it had value-add opportunities and good demographics," Hannum remarks. "It hit all the parameters of why so many groups came out to make an offer."