X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(Read more on the multifamily market.)

PHOENIX-A Laguna Hills, CA buyer began building a local portfolio with his first area acquisition of the 290-unit Metro Village Apartments. The buyer forked over $15.9 million for the vintage asset, and will invest $4 million more in renovations.

According to John McDonnell, multifamily specialist with Axxiom Partners LLC of Scottsdale, Ken Black plans full interior and exterior rehabs for the complex at 3106 W. Vogel Ave. Included in the overhaul plans are a landscape redesign, creation of a fitness center and club house, and relocation of the rental center.

“He’s trying to set the standard for rehab, and is putting in amenities that you’d normally see in Scottsdale apartments,” McDonnell comments. McDonnell represented Black in the off-market transaction with the Phoenix private seller, which was represented by Art Wadlund, partner with Hendricks & Partners’ Tucson office.

Black is in the process of selling his 2,500-unit Southern California portfolio with plans to invest the proceeds in more Phoenix area assets. “He said he wants to start here with between 600 and 1,000 units, but there’s no deadline as to when he’ll buy them,” McDonnell tells GlobeSt.com. He adds that Black is considering two potential deals in the vicinity of Metro Village.

“He’s looking for value-add deals, rehab deals in which he can change the dynamics to create value,” McDonnell explains. The location needs to be exceptional, with area fundamentals supporting the rehab investment.

This is what made the Metro Center Apartments so appealing. “The property is literally right next to the Metro Center Mall, with redevelopment going on,” McDonnell says. “Also, there’s been increased patrol and a community program dealing with crime awareness that Ken liked as well.”

Metro Village Apartments was built in 1979 and is 74% occupied. Situated on 11.5 acres, the complex has studio units, and one-, two- and three-bedroom apartments. The average unit size is 771 sf, and rents range from $472 to $985.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.