Mesa, Arizona (Nov. 15, 2018) – 29th Street Capital (29SC), a privately-held real estate operator, has acquired Argenta Apartments, a 396-unit multifamily community located in Mesa, Arizona. 29SC plans to invest over $3.2 million in capital improvements. Interiors will receive updated flooring, new black appliances and upgraded fixtures as well as plumbing and lighting packages. Cabinets will also be re-faced. Exterior improvements will focus on landscaping, A/C units and roof repairs. The new owner will add a dog park and playground and upgrade the pool area.
“The property is conveniently located north of Hwy. 60, which provides easy access to downtown Mesa as well as Tempe, Chandler, and Phoenix,” said Dusty Eddy, 29SC’s Senior Vice President of Acquisitions in the Southwest. “We are acquiring this asset at the right price in a highly desirable submarket, so overall it’s a great addition to our portfolio.”
The Phoenix metro market ranks third in the nation for rental growth, which is increasing by 6.2% year-over-year, according to CBRE Research. It is expected to finish 2018 with a 5.6% annual increase, which would move it up a notch to second place. Healthy macroeconomic factors are spurring the local economy. It continues to diversify through the expansion of the technology and healthcare industries as California companies and renters nationwide relocate to the Valley seeking jobs and affordability.
“The demographics for the Phoenix area are moving in the right direction,” Eddy added. “The market is experiencing profound increases in population and job growth, so we will execute our business improvement plan and offer a higher quality, yet still affordable housing option in a fast-moving market.”
Argenta is located in the geographic center of the East Valley, an ideal location for dual-income households commuting to different employment hubs. Proximity to Hwy. 60 connects residents to three of metropolitan Phoenix’s largest hospitals, which combined account for 8,100 jobs.
The transaction closed November 15. The sale price and seller were not disclosed.
Formed in 2009, 29th Street Capital is a privately-held real estate investment and advisory firm that employs a value-added investment strategy in acquiring properties that typically fall below the radar of its institutional peers. Over the past 12 months 29th Street Capital has also acquired 17 conventional multifamily assets and continues to actively pursue additional opportunities throughout the U.S.
29SC’s conventional multifamily portfolio currently consists of more than 8,100 units having acquired over 14,000 units across its 14 offices in the U.S. Investments typically require approximately $10 million to $100 million of total capital and involve the acquisition or recapitalization of individual real estate assets, portfolios or platforms.