CHANDLER, AZ—Arches at Hidden Creek is a garden-style 432-unit apartment community that was constructed in 1986 within the dynamic Chandler submarket. Seattle-based Security Properties recently purchased the multifamily property for $55 million. The seller was a venture between Hamilton Zanze of San Francisco and New York City-based New York Life Real Estate Investors, on behalf of institutional clients.
Chandler's median annual household income is approximately $71,000, 32% higher than Maricopa County, which covers most of the Phoenix MSA. Indeed, Chandler's greatest strength is its employment base.
Arches sits within five miles of 70,000 jobs in industries that include high-tech manufacturing, aerospace, bioscience and advanced business services. Silicon Desert is located just one mile southwest of Arches. Because of the city's central location and proximity to three freeways, it can pull from more than 1.7 million people within a 30-minute commute.
The property is also within close proximity to the ASU Research Park (15,000 jobs), Arizona Avenue Business Parks (20,000 jobs), downtown Chandler (5,000 jobs) and the Chandler Airpark (5,000 jobs). Less than 3 miles directly to the west of Arches is the Chandler Fashion Center, an upscale, super-regional mall that encompasses more than 180 stores and roughly 1.2 million square feet. The mall is widely considered the premier shopping destination in metropolitan Phoenix's Southeast Valley and is anchored by Nordstrom, Dillard's, Macy's and Sears.
According to Davis Vaughn, director at Security Properties, the acquisition was made because, “Arches at Hidden Creek offers everything we look for in an investment. The Chandler job story is one of the best in all of Phoenix plus the location gives residents easy access to retail and enrollment in the top-rated Chandler school district. With a basis well below replacement cost, we expect to produce outstanding risk-adjusted returns to our investors with this purchase.”
Security Pacific plans a moderate value-add. To date, 133 units have been upgraded throughout the property. Interior upgrades include new flooring, baseboards, black appliances, new countertops, new cabinet fronts with hardware and painted cabinet boxes to match, light fixtures, two-tone paint, ceiling fans, and updated hardware and plumbing fixtures. Security Pacific plans to continue this rehab strategy by renovating the remaining 299 original units to a similar interior scope.
“Both our investors and we have a strong appetite for Phoenix because of the outstanding job growth and low cost of living,” Vaughn tells GlobeSt.com. “We think this market is great relative value right now, and Security Properties will continue to selectively acquire unique apartment opportunities throughout the Phoenix MSA.”
Security Pacific now owns five assets in the Phoenix marketplace.
Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch with CBRE's Phoenix office negotiated the transaction. The property will be managed by Security Properties-affiliate Madrona Ridge Residential.
Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.
CHANDLER, AZ—Arches at Hidden Creek is a garden-style 432-unit apartment community that was constructed in 1986 within the dynamic Chandler submarket. Seattle-based Security Properties recently purchased the multifamily property for $55 million. The seller was a venture between Hamilton Zanze of San Francisco and
Chandler's median annual household income is approximately $71,000, 32% higher than Maricopa County, which covers most of the Phoenix MSA. Indeed, Chandler's greatest strength is its employment base.
Arches sits within five miles of 70,000 jobs in industries that include high-tech manufacturing, aerospace, bioscience and advanced business services. Silicon Desert is located just one mile southwest of Arches. Because of the city's central location and proximity to three freeways, it can pull from more than 1.7 million people within a 30-minute commute.
The property is also within close proximity to the ASU Research Park (15,000 jobs), Arizona Avenue Business Parks (20,000 jobs), downtown Chandler (5,000 jobs) and the Chandler Airpark (5,000 jobs). Less than 3 miles directly to the west of Arches is the Chandler Fashion Center, an upscale, super-regional mall that encompasses more than 180 stores and roughly 1.2 million square feet. The mall is widely considered the premier shopping destination in metropolitan Phoenix's Southeast Valley and is anchored by Nordstrom, Dillard's, Macy's and Sears.
According to Davis Vaughn, director at Security Properties, the acquisition was made because, “Arches at Hidden Creek offers everything we look for in an investment. The Chandler job story is one of the best in all of Phoenix plus the location gives residents easy access to retail and enrollment in the top-rated Chandler school district. With a basis well below replacement cost, we expect to produce outstanding risk-adjusted returns to our investors with this purchase.”
Security Pacific plans a moderate value-add. To date, 133 units have been upgraded throughout the property. Interior upgrades include new flooring, baseboards, black appliances, new countertops, new cabinet fronts with hardware and painted cabinet boxes to match, light fixtures, two-tone paint, ceiling fans, and updated hardware and plumbing fixtures. Security Pacific plans to continue this rehab strategy by renovating the remaining 299 original units to a similar interior scope.
“Both our investors and we have a strong appetite for Phoenix because of the outstanding job growth and low cost of living,” Vaughn tells GlobeSt.com. “We think this market is great relative value right now, and Security Properties will continue to selectively acquire unique apartment opportunities throughout the Phoenix MSA.”
Security Pacific now owns five assets in the Phoenix marketplace.
Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch with CBRE's Phoenix office negotiated the transaction. The property will be managed by Security Properties-affiliate Madrona Ridge Residential.
Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.
© 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.