80s-Era Complex Gets Makeover and New Owner

Former owner Hamilton Zanze implemented more than $3 million in capital improvements.

MESA, AZ—Built in 1985, Gateway on Gilbert is a 432-unit apartment community located at 1710 S. Gilbert Rd., approximately 20 miles southeast of Downtown Phoenix and at the center of several business corridors. During an ownership period of almost three years, San Francisco-based real estate investment company Hamilton Zanze implemented more than $3 million in capital improvements, including 216 unit upgrades, an extensive roof replacement and clubhouse remodel. Hamilton Zanze and New York-based joint venture partner Dome Equities recently sold Gateway on Gilbert Apartments to Capital Real Estate LLC for an undisclosed price. At the time of sale, occupancy of the class-B asset was 96%. ARA Newmark represented the sellers. “We executed on our value-add strategy at Gateway on Gilbert and were able to opportunistically sell the asset due to the strong Phoenix market,” says Kurt Houtkooper , Hamilton Zanze’s chief investment officer. “We look forward to a continued presence in this market.” The one- and two-bedroom units average 819 square feet and feature full-size washers and dryers, vaulted ceilings, fireplaces, ceiling fans and walk-in closets. Community amenities include four swimming pools, fitness center, sports courts, dog park, and picnic and barbecue areas. Houtkooper tells GlobeSt.com:  “Phoenix has always been a great market for us, and we look forward to continuing our presence in the metro. Gateway represented an excellent opportunity to modernize and reposition a well-located 1980s-era apartment community, and we are very pleased with the outcome.” Hamilton Zanze has sold 13 multifamily properties in 2016 thus far. Dome’s real estate portfolio totals nearly $1.27 billion, of which 94% are apartment properties located in 20 US metropolitan areas.