PHOENIX, AZ – L5 Investments (L5) in partnership with MLA Properties and BH Equities has acquired Cielo Apartments, a 360-unit apartment community, for $27.2 million in Phoenix. At approximately 91 percent occupied at closing, the partnership plans on executing an extensive $4.16 million capital improvement plan to increase occupancy and attract and retain residents seeking a quality, amenity-rich and well-located rental community with easy access to light rail transit.
“Although Cielo is in excellent condition overall, it needs a significant amount of key amenity and interior upgrades in order to help meet the demands of the renter base in the Phoenix area,” said Michael Flaherty, founder and managing partner of L5 Investments, an El Dorado Hills, CA-based multifamily investment firm. “These interior and exterior improvements will ultimately enhance the property’s marketability, help retain residents for longer periods of time, and obtain market rents.”
The renovation plan will focus on updating unit interiors including flooring, cabinets, lighting, appliances, and adding in-unit washers and dryers in select one bedroom and two-bedroom units.
Built in 1981, Cielo is situated on 10.52 acres at 8222 North 19th Avenue. Cielo has a mix of studio, one, and two-bedroom units with sizes ranging in from 455 square feet to 879 square feet. The units feature fully equipped kitchens, and private patios or balconies. Some units offer vaulted ceilings and fireplaces. The community’s on-site amenities include two pools, a newly renovated clubhouse and fitness center, picnic/barbeque area and covered parking.
Located approximately 10 miles from downtown Phoenix, Cielo is well served by nearby retail and restaurant amenities and provides excellent access to Interstate 17, Loop 101, and State Route 51. Residents benefit from having the METRO Light Rail at their front door, providing an alternative to commuting to school, work or visiting attractions around the Valley.
“L5 continues to seek investment opportunities in the greater Phoenix region as we believe that job and population growth shows continued upside. A large part of that growth is the number of colleges and universities here that contribute to that momentum. Young professionals want to enjoy the quality of life Phoenix offers and many are choosing to rent versus own,” added Flaherty.
The property is located six and a half miles south of Northern Arizona University’s North Valley campus and six and a half miles east of its Glendale campus. Phoenix is also home to Grand Canyon University, which enrolls over 15,500 full and part-time students at the main campus less than three miles from the property. The downtown campuses of Arizona State University (11,000 students enrolled) and the University of Arizona (630 students enrolled) are located southeast of the community, offering convenient accessibility to the state’s largest institutions for higher education.
For the past two decades, Phoenix has been consistently ranked as one of the fastest growing U.S. economies and was recently ranked #3 for high tech job growth. In addition, Phoenix was ranked #5 for “The Best Cities for Young Professionals” by Forbes in 2017. Phoenix earned two national distinctions with U.S. Census Bureau numbers released in 2017: Fifth-largest city and fastest-growing city.
Brett Polachek and Jim Crews of Cushman and Wakefield brokered the transaction on behalf of both the buyer and the seller in an off-market transaction.
About L5 Investments: Founded in 2009, L5 Real Estate Investments, LLC (DBA L5 Investments) is a privately held investment firm focused on value-add, income-producing multifamily properties in emerging U.S. markets. The firm currently has in excess of $280 million of assets totaling 3,700 units under management in seven states. The company targets opportunities that provide high-yield, passive cash flow and long-term capital appreciation for its investors through strategic acquisition, renovation, and superior asset management. L5 and its partners continue to capitalize on opportunities to own multifamily properties in premier locations. These properties generate attractive short-term income and long-term wealth potential. L5’s success and reputation has been built on its track record, conservatism, passion, attention to detail and the belief that trust starts and ends with honesty and integrity. L5 is based in El Dorado Hills, CA. www.L5invest.com
About BH Equities and BH Management Services: BH Companies are committed to creating value by acquiring, improving and managing apartment communities with the goal of maximizing asset value for their partners. Their success in this endeavor is evidenced by their growth from a start-up firm in 1993 to one of the largest multi-family owners and management companies in the nation. BH Companies is comprised of three divisions including BH Equities, BH Management Services and BH Construction Services. With more than 80,000 units under management in 21 states, BH Management Services, LLC ranked 9th on the National Multifamily Housing Council’s Top 50 Management Companies for 2018, while BH Equities ranked 17th on the NMHC’s Top 50 Owners. For more information, visit www.BHManagement.com