Assets are Prime Candidates for Renovation Programs

Sienna at Riverview is near the largest office development in Arizona’s history, Marina Heights.

PHOENIX—Both within proximity of super malls, established office facilities and other area attractions,  two mega-multifamily properties prove the live/work/play concept is alive and well. And, both recently sold at prices garnering more than $100,000 per unit. The Reserve at Arrowhead , a 472-unit multifamily asset sold for $64.5 million or more than $136,000 per unit. In Mesa, AZ, Sienna at Riverview , a 340-unit apartment community sold for $53.8 million or more than $158,000 per unit. The Reserve at Arrowhead was purchased by Weidner Apartment Homes . The property is within walking distance of Arrowhead Towne Center , a 1.2 million-square-foot super-regional mall. There are many employers within proximity, including a heavy concentration in the health-science field, such as 35-acre St. Joseph’s Westgate Medical Center . Also nearby are Luke Air Force Base, AAA, the City of Glendale, Honeywell, Humana Healthcare, Midwestern University, Conair Corp. and the Thunderbird School of Global Management . Highlighting The Reserve at Arrowhead’s many community amenities are two lagoon-style swimming pools enhanced with waterfalls and spas. Apartment homes feature fully equipped gourmet kitchens with pantries and full-size washers and dryers. Senior director of Institutional Property Advisors (IPA), a division of Marcus & Millichap specializing in serving institutional and major private real estate investors, Steve Gebing , and Cliff David , a senior director of Marcus & Millichap’s national multi-housing group, were the brokers in both transactions. Gebing and David represented Reserve at Arrowhead’s seller, an institutional investment management firm and procured the buyer. “Developed in two phases between 1998 and 1999 by Mark-Taylor Inc., Reserve at Arrowhead’s positioning within the submarket’s competitive landscape makes it a prime candidate for common area amenity upgrades and interior renovations,” says Gebing. “The condition of the physical asset and community grounds is immaculate, yet there is room for value enhancement through the implementation of a strategic renovation program.” Gebing and David represented Sienna at Riverview’s seller, LCOR , and procured the buyer, IMT Capital . Community amenities include a stand-alone leasing office, a clubhouse with an executive conference room and business center, a fireside lounge, an Aquamarine pool and spa, covered parking and private detached garages. “Developed in 1999 by Fairfield Residential , Sienna at Riverview has significant operational momentum, as evidenced by the increase in the weighted average net effective rents for the previous 90-day move-ins,” says Gebing. “This foundation paves the way for the new owner to capitalize on substantial rent growth during the first year of ownership. The property is also a prime candidate for value enhancement through interior and exterior and renovations.” Sienna at Riverview’s one- and two-bedroom apartment homes have 9-foot ceilings, full-size washers and dryers, walk-in closets and private patios or balconies. Select units feature corner wood-burning fireplaces, built-in bookshelves, linen closets and private dens. Gebing tells GlobeSt.com: “Renovations may include common area improvements, including contemporary enhancements to the leasing office, clubhouse, fitness center and pool areas. The new owner also has the opportunity to reposition the living spaces by upgrading the countertops, cabinets, appliances, flooring, lighting, ceiling fans, hardware and plumbing fixtures and integrating the improvements with a two-tone paint scheme. A renovation package like that would cost approximately $6,000 per unit and have the potential to generate approximately $125 per unit in weighted average monthly rent premiums.” The largest office development in Arizona’s history, Marina Heights , is currently being developed on the south bank of Tempe Town Lake , which is less than three miles from the property. Two 1.3- million-square-foot shopping centers, Mesa Riverview and Tempe Marketplace , are approximately one mile from the community. Arizona State University ‘s main campus is within three miles and Sloan Park , the western headquarters of the Chicago Cubs, is directly across the street. “Situated in the premier section of Mesa at the boundary of thriving Tempe, Sienna at Riverview has an unmatched location,” adds David.