Studio 710, an apartment community located at 710 Hardy Drive in Tempe, has been sold to Tara Investment Group of San Francisco for $26,750,000.00. The property is located in the heart of burgeoning Tempe.
“This asset is located within walking distance of the ASU campus, Tempe Town Lake, Metro Light Rail, Mill Avenue, and 50,000+ jobs,” says Brad Cooke with Colliers International in Arizona. “This is a true Live Work Play location with a 97% bike score.”
Tara Investment Group was self-represented in the transaction. The company purchased the apartment community from Domain Communities, a private value-add multifamily real estate investment company. Domain was previously based in Scottsdale for 10 years before moving to Houston in 2012. The principal of Domain Communities, JD Golden, has not forsaken his Arizona ties, buying over 3,000 apartment units in Mesa, Phoenix, Tempe and Tucson since 2014. “The Phoenix market has proven incredibly resilient during the past 6 years and is still poised for further growth” said Golden. Brad Cooke and Cindy Cooke of Colliers International in Arizona represented the seller in the transaction.
Studio 710 contains 239 apartment units within 12 buildings totaling 98,500 square feet. Built in 1975, the two-story, garden style community features a very modern atmosphere with a recently renovated resort-style amenity package. The community now features two luxurious resort-style pools with cabanas a free Wi-Fi. A trainer-designed fitness studio, outdoor jogging track and outdoor gathering areas all have been added. Studio 710 now offers fire pits, outdoor yoga and zen space, bike racks and a variety of entertainment areas.
45 of the units are in classic condition and the remaining units have been upgraded to a B level. The buyer intends to renovate the remaining 45 units plus bring some of the B level upgrades to a more modern full upgrade to compete just below the new construction.
Tempe has been identified as one of Top 100 fastest growing cities in the country by WalletHub. The submarket has become a home for major tech companies, many relocating from Silicon Valley. The strong job and population growth has equated to a 7.9% rent growth for the submarket.