PHOENIX—Cornerstone Realty Group Inc. announces the submission of a $26 million offer on a 272 unit multifamily property located in the greater Phoenix metropolitan area. CRG is headquartered in Orange County.
President of CRG, John Itzel, tells GlobeSt.com the investment would be a typical value-add investment for his company.
“It's a 16-year-old, class A property and we have the opportunity to really increase its appeal,” says Itzel. We're seeing newer class A properties with 30% higher rents, so if we can get in there and make those improvements, we can see those higher rents.”
Itzel says the project was built to class A standards in the late '90's.
“It is still a beautiful property with many amenities and a lot of potential. It will not take much to bring it up to speed and keep it competitive with other, more recently developed class A properties in the same area. By investing in interior renovations and some minor exterior renovations we could really drive up the value and increase profitability. I have previously been involved in the successful acquisition and rehab of over 1,600 units in the Phoenix marketplace and believe that the timing is right for this property.”
Itzel is also looking harder at other Arizona properties.
“Phoenix is a great marketplace, jobs are coming back—we're looking more and more at Arizona.”
With Arizona's job market fairing very well and a quickly growing population, conditions for investing in this type of property are very favorable. Thousands of new jobs were created in the area last year alone not to mention more than $1 billion invested in economic development projects. Phoenix was also listed as the nation's fourth fastest growing city for 2014 by Forbes.
CEO Rourke Oakland says this of the favorable economic conditions in the area:
“The amount of high quality jobs in the Phoenix area and the growing population
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