29th Street Capital expands its portfolio in the Phoenix area
29th Street Capital completed its 16th multifamily investment in the Phoenix metro area with the acquisition of Oceana Apartments. The company bought the Class B+ community in Avondale, Arizona from an undisclosed seller, but Yardi Matrix data shows the last time Oceana Apartments changed hands was June 2017 , when Management of Ares acquired it for nearly $30.8 million from Alliance Residential Co.
The 240-unit property offers one-, two-, and three-bedroom units ranging from 685 to 1,071 square feet, according to Yardi Matrix data. Oceana Apartments was built in 2004 and includes a fitness center, clubhouse with business center, swimming pool and spa. Dusty Eddy, senior vice president of Southwest region acquisitions for 29th Street Capital, said Multi-Accommodation News that the community is about 97% occupancy and added that the company has planned about $2.1 million in renovations.
Renovations will include upgrades to the clubhouse, fitness center and outdoor areas as well as fresh exterior paint. As for units, 29th Street Capital plans to install water-efficient toilets in every unit. The new owner will also put his in-house property management company, Residential Havenin charge of the management and rental of Oceana Apartments.
Eddy said in prepared remarks that the community is close to some of the biggest entertainment venues and fastest growing employment hubs in the region. Located at 1700 N. 103rd Ave., the community is near the Interstate 10 and Loop 303 industrial and distribution corridors which are home to major employers including Amazon, Chewy, Lockheed Martin, Microsoft, Macy’s Distribution, Boeing, Sub-Zero and Dick’s Sporting. Goods.
EXPANSION IN THE SOUTHWESTERN UNITED STATES
In 2019, 29th Street Capital acquired another community in Avondale, the 168 Las Casitas apartments. Now in 2022, Eddy said MNH that the company is “extremely bullish on the Phoenix market” due to market fundamentals showing strong employment and population growth. Eddy added that 29th Street Capital will continue to seek higher value or core-plus acquisitions, but will also look to expand into developments in the region.
Outside of Arizona, the company’s portfolio also included several communities in the Las Vegas market, but Eddy said MNH that the current portfolio has only one property there. He added that the company plans to expand its presence in Las Vegas as well as expand into the Alburquerque, NM market, since both markets have similar market fundamentals to Phoenix. Overall, 29th Street Capital has acquired more than 27 multifamily assets across the United States in the past year, totaling more than 6,300 units.