PHOENIX, AZ – 29th Street Capital (29SC), a privately-held real estate investment and advisory firm, has acquired The Standard Apartments, a 227-unit multifamily community in Tempe, Arizona. 29SC’s strategy is to invest $1.8 million into renovations to significantly upgrade the interiors and to enhance the exterior of the apartments. This is the seventh acquisition 29SC has made in the Phoenix/East Valley market in the past two years.
“The Standard Apartments allows us to grow our presence in the Phoenix market while simultaneously acquiring a strong property in a popular submarket that continues to experience positive population and job growth,” said Dusty Eddy, 29SC’s Vice President of Acquisitions for Phoenix, Las Vegas and San Diego. “We believe there is a lot of upside to this property with renovations, as well as improved amenities, that will allow the property to provide a better standard of living for its residents.”
The Standard resides within the city of Tempe, which has experienced strong population and job growth in recent years resulting in an unemployment rate below 5%, and several new office developments. The metro area is projected to realize job growth of 40% over the next 10 years and continue to benefit from a young and highly-educated workforce.
The community is situated in a high-demand area that attracts a younger demographic because of its proximity to Arizona State University. The property further benefits from nearby Loop 101, Loop 202, and I-10, which provide above-average accessibility throughout the East Valley and the rest of the metro area.
29SC plans to invest $1.8 million ($8,000 per unit) in capital improvements to enhance the exterior, improve amenities including the dog park and pool area, and renovate the interiors. Interior upgrades will include new black appliances, flooring throughout, backsplashes, resurfaced counters in kitchens and baths, two-tone paint, as well as new light fixtures and hardware. Upon completion, the Standard will offer a substantially-improved product that will be more competitive with the surrounding market.
The transaction closed January 23. The sale price was not disclosed.
29th Street Capital acquired 13 multifamily assets in 2016 and continues to actively pursue additional opportunities throughout the U.S. The firm will continue to target strategic value-add deals which are below the institutional radar, with the intention of offering its investors above market returns.
Formed in 2009, 29SC is a privately-held real estate investment and advisory firm that employs a value-added investment strategy in acquiring properties that fall below the radar of institutional peers. 29SC’s multifamily portfolio consists of over 7,000 units and it has acquired over 9,000 units across its 12 offices in the U.S. Investments typically require approximately $10 to $50 million of total capital and involve the acquisition or recapitalization of real estate assets, portfolios or platforms.
Learn more about 29SC at www.29thstreetcapital.com.