Avondale, Arizona (June 12, 2019) – 29th Street Capital (29SC), a privately-held real estate operator, has acquired Las Casitas Apartments, a 168-unit multifamily community located in Avondale, Arizona. This will be the firm’s 13th acquisition, for a total of more than 2,500 units, in the Phoenix market. 29SC plans to invest over $2.1 million in capital improvements. Interior upgrades include black appliances, improved lighting, USB ports, refaced cabinets, fresh paint and kitchen backsplashes. Exterior renovations will focus on enhancing the dog park, clubhouse, pool area and other amenities while also addressing deferred maintenance.
“Las Casitas offers residents easy access to downtown Phoenix and the greater West Valley via Interstate 10, while the Loop 202 expansion is expected to increase access to the East Valley,” said Dusty Eddy, 29SC’s Senior Vice President of Acquisitions in the Southwest. “Population growth within three miles is forecast to exceed 7.7% for the next five years as employment opportunities flood the area.”
The Phoenix metro area ranks as the number one market for rental growth rates at 8% year-over-year, according to RealPage Analytics. The market is supported by strong fundamentals including a robust 95.4% occupancy rate due to strong net absorption and a job growth rate of 3.8%, which is well above the national average. It is estimated that the Phoenix market requires nearly 12,000 new housing units annually through 2030 to keep up with demand.
“Technology firms and other companies are steadily relocating to the Phoenix area,” Eddy added. “The region is experiencing profound economic growth as these employers build regional campuses and continue to expand into the market.”
Las Casitas is within walking distance of public elementary and middle schools and less than two miles from the high school. The I-10 freeway gives easy access to downtown Phoenix, several regional hospitals and an Amazon fulfillment center. Less than a 15 minute drive from the property is Luke Air Force Base, which employs 5,900 people and has a $2.4 billion impact on the state. Nearby industrial and data centers employ 35,000 people; planned expansions are expected to add more jobs as well.
The transaction closed June 13. 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 16 conventional multifamily assets and continues to actively pursue additional opportunities throughout the U.S. 29SC’s conventional multifamily portfolio currently consists of more than 8,800 units having acquired over 15,400 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.