Western Wealth Capital (WWC), a growth-focused real estate investment company, recently acquired Villatree, a 150-unit multifamily community in Tempe for $17.35 million, that increases the company’s total number of acquired rental units to more than 7,000, ranking Western Wealth Capital as the second-largest multifamily owner in the Phoenix area by number of units.
Villatree is located close to Loop 101 and Broadway Road, and within proximity of major employers, including Arizona State University, State Farm and the Phoenix airport. Built in 1980, Villatree provides excellent value-add opportunities for updating units and community amenities, and normalizing rents to market rates to increase net operating income and the value of the property. The acquisition of Villatree was brokered by Marcus & Millichap.
Western Wealth Capital has grown its Southwestern U.S. rental portfolio at both scale and pace by adhering to a precise investment and operations strategy that provides consistent investor returns and improves communities.
The acquisition of Villatree represents the company’s 39th multifamily community purchase (7,037 total units) since its inception in 2011. However, the majority of acquisitions were completed in the last three years, highlighting the company’s execution strength and access to opportunities.
Three-year acquisition snapshot:
Year # Acquisitions Purchase price #Units
2017 12 $210.5M 2,568
2016 9 $160.7M 1,954
2015 9 $116.5M 1,386
Total 30 $487.7M 5,908
“Our mantra is repeatability creates scalability,” says Janet LePage, CEO of WWC. “By remaining disciplined to a model that works, we’ve built a strong reputation with commercial property brokers, financial institutions and property management companies. And we’ve built out our own bench strength prudently. Together with our investor partners we are strongly positioned for continued growth.”
WWC has a disciplined six-stage strategy. We acquire undervalued multi-family rental properties; carefully allocate capital to accretive improvements; optimize operations to increase the asset’s net cash flow and valuation; refinance to return equity to investors; and, when appropriate, divest.
To date, the purchase price value of all WWC acquisitions is $536.4 million. WWC’s current portfolio, net of divestments, includes 28 multifamily unit rental buildings, totaling 5,356 units.