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TEMPE, AZ-Marking their second JV purchase in the metro, Crown Pacific Properties LLC and AEW Partners IV LP have paid $14.7 million for the Lakefront at West Bay to a limited liability company in Phoenix. The JV intends to sink $1.8 million into capital improvements that ultimately will position the 95%-occupied property for increased rents.

“We like the South Tempe submarket. Specifically about the project, we liked the fact that this was the first master-planned community done in the Phoenix area in the ’70s,” Ed Easley, president and CEO of Crown Pacific, tells GlobeSt.com. “It has lake frontage andalso frontage on Baseline Road, which carries 40,000 cars a day. There’s great exposure to drive-by traffic.”

The 25-acre Lakefront at West Bay at 999 E. Baseline Road was on the market 10 days at a list price nudging $15 million when the JV made its offer, Easley says. He expects a three- to five-year hold on the asset following renovations and repositioning. Acquisition financing was provided by Principal Financial Group Inc. of Des Moines. Tyler Anderson and Sean Cunningham, a Phoenix team with CB Richard Ellis Inc., represented the seller of record, CMIV LLC of Phoenix, in the transaction.

Developed in 1975, the holding has a pair of five-story buildings and one two-story structure. The 244 units range from 546 sf for one-bedroom apartments to 1,330 sf for a three-bedroom design. Monthly rents average $700 per unit.

Proposed renovations include installation of washers, dryers and microwaves to most units, exterior paint, expansion of an existing fitness center and the addition of a movie theater with wide-screen television. The Irving, TX-based JPI will manage the property.In January, the San Diego-based Crown Pacific and AEW Partners IV LP, an investment fund managed by AEW Capital Management LP of Boston, purchased the 255-unit Camelback Towers at 4750 N. Central Ave. in mid-town Phoenix for $15 million. That property similarly is undergoing a renovation and repositioning campaign with a $5-million price tag that will reintroduce the asset as the Landmark Tower.

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