PHOENIX, AZ - Roxborough Fund I, an affiliate of San Francisco-based real estate investment firm The Roxborough Group, completed the acquisition of Park Ridge Apartments located in Phoenix, Arizona. Deal terms remain undisclosed.
The 168-unit apartment complex is located in the Paradise Valley submarket, one of the more desirable, infill submarkets of Phoenix that offers exceptional demographics, superior public schools and high barriers to entry with no new units currently planned or under construction in the surrounding area.
The property's location is adjacent to 2.8 million square feet of retail and restaurants including the 1.2 million square foot, Paradise Valley Mall. In addition, the property benefits from convenient access to major regional employment centers via freeways 51 and 101 and sits within a 10-mile radius of over 350,000 jobs.
"We are excited our first acquisition in Phoenix is in a coveted, amenity rich, infill location and is priced at a significant discount to replacement cost," said Senior Vice President of The Roxborough Group, Matt McCormick. "With no new supply in the immediate area, we believe the asset is well positioned to take advantage of Phoenix's strong forecasted employment and population growth."
Roxborough has retained Phoenix-based Alliance Residential Company ("Alliance"), one of the premier multifamily property managers in the U.S., as a third-party manager. A full repositioning of the asset is planned and includes a rebranding under the Alliance "Broadstone" name, upgrading the common areas, installing in-unit washer and dryers and renovating the unit interiors.
The business plan will improve an underperforming asset to better capitalize on the strengthening market while remaining at a discount to competitive products. Both Roxborough and Alliance's multifamily experience will be critical to the execution of the overall business plan.
"This acquisition fits well with our existing portfolio of multifamily assets that target tenants seeking superior product at an affordable price point," added McCormick. "As the western U.S. continues to confront a shortage of housing, we will seek opportunities in infill locations that have access to jobs, quality schools and provide affordable rents."