Source: Security Properties / #Apartments #Multifamily
PHOENIX, AZ - A joint venture between Security Properties and funds managed by Oaktree Capital Management, L.P. purchased Canyon Creek, a 440-unit property built in 1984 and located in Phoenix, AZ; Stillwater, a 516-unit property built in 1984 and located in Glendale, AZ; and Off Broadway, a 320-unit property built in 1986 and located in Mesa, AZ. Security Properties now owns a total of eight assets in the Phoenix marketplace.
Metropolitan Phoenix is one of the nation's fastest-growing regions, consistently recognized for strong job growth and an entrepreneurial environment. Affordability and a uniquely deep labor pool of applicable human capital continue to drive significant corporate investment in the market. Metropolitan Phoenix is forecasted to be in the top three major metropolitan areas in employment growth over the next two years. From 2017-2018, job growth is projected at 2.8% annually or roughly 112,000 jobs over the next two years. Metro Phoenix is also ranked #1 among major western markets for population growth through 2019.
The portfolio represents a value-add investment. The joint venture plans to upgrade 100% of the units with a consistent renovation spec. The new spec will include a black appliance package, sprayed countertops, new flooring as well as updated lighting and plumbing fixtures. Additionally, 236 units will receive washer/ dryers. Capital will also be focused on the upgrading of resident common areas/amenity space and addressing miscellaneous deferred maintenance items.
According to Davis Vaughn, Director at Security Properties, the acquisition was made because, "We are big believers in workforce housing, especially in metros with substantial job growth. The affordability of Phoenix relative to other west coast markets continues to attract renters and jobs to the area and this is why we are scaling up there. Once our renovation is complete, we will be able to offer competitive units to the market while still maintaining a basis significantly below replacement cost."
The property will be managed by Security Properties-affiliate Security Properties Residential.