503-unit

[IMGCAP(2)]The most recent of the three Phoenix multifamily deals is 3 Street's $15.9 million acquisition of Quail Point, a 264-unit, 12-building apartment complex. Perseus Realty Capital raised $5.2 million in JV equity capital for this deal, according to Tom Howland, who along with Moiz Doriwala, managed the transaction. Last year this complex traded for $15 million.

The other two acquisitions were of the Veranda, a 156-unit garden style community on West Thomas Road and Windtree Village Apartments, a 103-unit, eight-building apartment complex. Somera Capital Management in Santa Barbara was the equity provider for all three deals. Prudential Mortgage Capital Co. provided the debt for the Veranda and Windtree transactions. Freddie Mac provided the debt for Quail Point.

Howland tells GlobeSt.com that the lenders like 3 Street's approach to the market: all three properties are value-add plays in good in-fill locations in Phoenix. The plan is to upgrade and rehab the buildings and attract tenants by specifically adding features that appeal to Hispanic renters, he says. These include such touches as tile instead of carpet, big kitchens and two-to-three bedroom units, as opposed to a smaller number of bedrooms, in order to accommodate larger families. The developer, he says, is counting on "a word of mouth marketing campaign that will fill up the buildings with the right tenants that will stay longer because they like the community."