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TEMPE, AZ-With the deed in hand, Colgate Group is mapping out a renovation program for a four-property, 266-unit portfolio on a full city block. The local investment group has paid $21.4 million for the 100%-occupied complexes, all within walking distance of Arizona State University.

According to Greg Thielen, associate partner with Hendricks & Partners’ Phoenix office, the new owner will undertake a moderate renovation of the class B assets and run them as student properties. A third-party management group will be brought in to run the complexes, says Thielen, who teamed with Hendricks & Partners’ associate partner John Kobierowski on behalf of the seller, Larry Kates of Corona Del Mar, CA.

The University Property Portfolio was sold to Colgate Group through an off-market transaction. Thielen says Kates acquired the assets in separate transactions during the early and mid-1990s, and says the market’s timing encouraged him to sell. “He’d held them awhile, made some money and is looking to do other things now,” the broker says.

Thielen says Colgate is an opportunistic buyer looking for more investments in the region. In May, Colgate paid $24.5 million for the 468-unit Willow Springs Apartments in Phoenix’s west-central corridor.

The portfolio is positioned on one block. The package consists of the 36-unit University Place at 910 E. Lemon St.; 90-unit University Pointe at 919 E. Lemon St.; 76-unit University Square at 1011 E. Lemon St.; and 66-unit University Gardens at 1019 E. Lemon St.

The complexes contain studio apartments and one-, two- and three-bedroom units from 400 sf to 1,000 sf. Monthly rents go from $590 to $995.

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