Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PHOENIX-Right Place Properties has bought the first asset in its plan to acquire 2,750 apartments this year in Greater Phoenix and Houston. The local investment group has paid $4.8 million for the 98-unit Maridale Villa Apartments.

The buyer has been assembling class B and class C properties for eventual conversions into affordable condominiums when the time is right. However for now, the 34-year-old Maridale Villa Apartments, situated at 5701 N. 78th Ave. in nearby Glendale, will remain in the region’s rental pool.

Natan Jacobs, managing principal for Red Door Commercial in Phoenix, tells GlobeSt.com that Right Place, a sister company, will spend another $3,000 to $4,000 per unit to renovate Maridale Villa. Situated on 5.8 acres, the 85%-occupied complex has one-, two-, three- and four-bedroom units, ranging from 600 sf to 980 sf. Rents are between $641 and $1,064 per month.

Jacobs says Right Place will hold Maridale Villa for three to four years rather than two to three years, which has been its typical MO in the past. “That’s unusual for us, to hold it for that long,” Jacobs says. He adds that another reason for the change is due to market uncertainty. “We’re still getting investors and are getting properties. But, people aren’t buying as many condos as they were,” he says.

Jacobs says the plan for the coming year is to keep all acquisitions as rentals and there are plenty more in the pipeline. He says Right Place expects to acquire 750 more units in Phoenix this year and 2,000 apartments in Houston.

The investment group entered Houston last fall with its buy of the 94-unit Braesforest Apartments at 8100 Creekbend Dr. Jacobs says it’s performing extraordinarily well. “We renovated the exterior by December, got the models ready to go, then launched the marketing,” he says. “We’ve already sold 35 units out of a 90-unit property. There’s definitely a pent-up demand for affordable housing in Houston.”

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
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


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 © 2021 ALM Media Properties, LLC. All Rights Reserved.