Source: National Asset Services / #Student #Housing
TEMPE, AZ - National Asset Services announced the sale of Gateway at Tempe, a college student housing property located approximately 1 mile East of Arizona State University on East University Drive in Tempe, Arizona. An undisclosed buyer purchased the Property from a group of 33 tenant-in-common (TIC) co-owners that were advised by NAS during the transaction process. Built in 1998, Gateway at Tempe was purchased by the TIC group in December 2006 for $55,756,000.
NAS, known for its track record of turning around properties burdened by economic conditions, assumed asset management responsibilities for the student housing Property in 2010. The Company's executive management hurdled recession driven economic obstacles, while revitalizing the property with a remodel of major amenities. Aggressive leasing and strategic, entrepreneurial management maximized property value by increasing occupancy to its current level of over 95% resulting in a $1,000,000 cash reserve and a 6% cash distribution to co-owners. The property improvements and enhanced cash flow attracted interest from multiple buyers.
"Gateway at Tempe is a unique asset in a very competitive student housing marketplace," added Karen E. Kennedy, President and Founder of National Asset Services. "Our clients and management team worked together to improve the Property's living experience for students, while generating positive cash flow. We are delighted to have delivered a favorable outcome for our clients as well as providing a property with positive cash flow with economic upside to new ownership."
Gateway at Tempe is one of the largest student housing properties in the Arizona State University area, with 918 beds and 288 units. Situated on approximately 19 acres, the garden-style student living community consists of 19 two and three-story wood frame residential buildings and a single-story clubhouse/leasing building. The residential buildings contain 289,704 square feet of net rentable area, which equates to an average unit size of 1,006 square feet. Consistent with offering a quality student lifestyle, the apartment community features a swimming pool, basketball court, two lighted tennis courts, a fire pavilion and a lighted sand volleyball court.