Largest Multifamily Investment Purchase Hits the Sale Column

TruAmerica will invest an additional $10 million on a comprehensive renovation program.

SCOTTSDALE, AZ—Built in 1980, Scottsdale Springs is an institutional-quality multifamily complex. It features a mix of one-, two- and three bedroom floor plans ranging in size from 680 to 1,440 square feet in one of the few low-density garden-style multifamily environments in Scottsdale. In the largest investment in Arizona to date, TruAmerica Multifamily has acquired the 644-unit community from NY-based Abacus Capital Group in an off-market transaction valued at $80.9 million. Located at 7791 East Osborn Rd., Scottsdale Springs is the third acquisition in Arizona in the past nine months for TruAmerica, which has a portfolio in the Grand Canyon State now totaling 1,567 multifamily units in Phoenix and Chandler, AZ. “Unlike many of the other major Western markets, Phoenix is still in the prime of its post-recession economic growth,” said TruAmerica senior managing director of acquisitions and dispositions, Greg Campbell .  “Phoenix is forecasted to lead the nation in job growth over the coming years and is further aided by the growing demand by millennials to target ‘Sun Belt’ markets. Downtown Scottsdale is Phoenix’s strongest submarket and is emerging as one of the most dynamic technology employment markets in the Western United States. Consequently, we continue to seek out sound investment opportunities here.” The Los Angeles-based real estate firm has invested approximately $225 million in Arizona since it entered the market in 2014. Last month, the firm acquired Villa Blanco , a 379-unit community in Tempe, AZ for $56.7 million. Campbell tells GlobeSt.com: “If you spend any time in Downtown Scottsdale, you can’t help but notice that it’s ground zero for the millennial crowd. From jobs to entertainment and shopping options, it has everything they want. It has a West LA/Newport Beach vibe to it that isn’t seen elsewhere in the Phoenix market. We are enthusiastic about our prospects here.” TruAmerica will invest an additional $10 million on a comprehensive renovation program that will transform the property to a luxury living environment that will still be affordable for working class families and individuals. Facilitated by TruAmerica’s in-house construction management team, improvements will include interior upgrades to all residential units, the construction of a new clubhouse with updated fitness center, a media and business center, and a rooftop lounge overlooking a redesigned pool. Existing community amenities include three pools, a dog park, outdoor kitchens and barbecue areas. “When completed, residents will benefit from an amenity package unparalleled in the submarket at this price point and, more importantly, post-renovation rents will be well below that of the newest class-A product in Downtown Scottsdale,” added TruAmerica chief operations officer Lynn Owen . Tyler Anderson and Sean Cunningham with CBRE ‘s Phoenix office negotiated the transaction on behalf of the seller. “Scottsdale Springs features some of the lowest rents in Downtown Scottsdale and presents a truly unique opportunity to dramatically increase net operating income through interior and common area improvements,” said Cunningham. “Additionally, Downtown Scottsdale is substantially built out with minimal sites available for future multifamily development.”