Phoenix, AZ—Su Casa Properties, LLC (SCP) announced the acquisition of Barrington Regent Apartments, a 124–unit complex located at 825 West Osborn Road, Phoenix, AZ, for $7,050,000. In this “short–sale” transaction, SCP negotiated with New York Life to achieve a price of $56,854/unit exclusive of rehab/closing costs; this represents a 7.49% cap rate inclusive of all costs to reposition.
Barrington Regent Apartments is SCP’s first investment in the Phoenix market and, combined with SCP’s Utah holdings, creates a total of 738 units; Apartment Capital Management (ACM), who manages all of SCP’s assets, also manages more than 6,000 units in the Greater Phoenix market. SCP will leverage ACM’s management platform to oversee renovations as well as manage this asset to a stabilized level.
The property is located in a mature, midtown Phoenix neighborhood—less than one–half mile from downtown. Barrington Regent consists of five mid–rise buildings with varying–sized floor plans ranging from studios to two–bedroom units.
The attractive cost–basis, favorable unit mix, recovering market fundamentals, and value–added potential make this an exceptional addition to SCP’s existing investments.
SCP plans to conduct a modest renovation of the property with the following upgrades: new kitchen and bathroom packages, repainting and re–carpeting. Exterior renovations will include: a re–striping and sealing of asphalt parking areas, solar hot water heaters, and improved landscaping.
SCP will also implement its Urban Village resident program to create a sense of community, hosting functions that bring the resident base together in a “village” format while providing programs for “greener/sustainable” living practices.
About Su Casa Properties
San Francisco–based Su Casa Properties, LLC acquires and repositions multi–family apartments in targeted markets throughout the Western states. SCP has invested in a series of multi–family projects incorporating “value–added” renovations to reposition the assets and stabilize cash flow. Investors in SCP include nationally credentialed investors, first–time investors, high–net–worth individuals, and institutional funds.