TEMPE, AZ-AG-ICC Haven Owner LLC, a joint venture between San Diego-based Interwest Capital Corp. and Angelo, Gordon & Co. in New York City acquired the 660-unit Haven from foreclosure. The JV paid special servicer Petra Capital Management $46.5 million for ownership rights, and plans additional capital investment of $5,000 per unit for upgrades, as well as extra for landscape improvement and a new clubhouse.
“The group that previously owned Haven planned to convert it to condominiums, and had improved half the units,” explains Karl P. Coleman, president with Interwest. “Our plan is to go in and do major renovations of the remaining units to bring them up to quality.” Coleman says that the complex at 1440 E. Broadway isn’t technically student housing, but it seems to be popular among the students who attend nearby Arizona State University; many of the residents are students. “Our goal is to make this property more competitive and appealing to the student tenant base, then to ride the market,” he adds.
Coleman tells GlobeSt.com that the deal – the third for the joint venture — was all cash, with financing obtained for the multifamily property later this year. He explains that Interwest’s typical M.O. is to buy deals with cash, then finish improvements before seeking financing. No name changed is planned for the property and P.D. Bell will continue managing it.
Though Cliff David and Steve Gebing with Marcus & Millichap Real Estate Investment Services’ Phoenix office represented the seller in negotiations, Coleman says the transaction was strictly off-market, based on an existing relationship between Interwest and Petra.
With its most recent buy, Interwest has acquired close to 1,500 mulitfamily units during the past year and a half, owning assets in Texas, Arizona and Wisconsin. “It’s been a good year in terms of pipeline and acquisitions,” Coleman says, adding that, while the company invests in all asset classes, it’s particularly drawn to multifamily properties and hotels.