Next Wave Investors, LLC (“Next Wave”) a private equity firm focused on value-add multifamily investments, has sold Westover Parc Apartments, a 160-unit apartment community in Phoenix, Arizona, to an East Coast-based buyer for $41.625 million.
Next Wave, through a subsidiary company, initially purchased 103 of the units as condominiums in September 2019 and proceeded to strategically acquire the remaining units from more than a dozen different sellers over six months, for a total consideration of approximately $22 million. Through enacting a proven value-add program, the firm was able to nearly double the value of the asset in just over two years, according to Jordan Fisher, Principal at Next Wave.
“As early value-add multifamily investors in the high-growth Phoenix market, we’ve been well positioned to continue to identify and secure lucrative opportunities as competition has skyrocketed,” explains Fisher. “We leveraged our strong local connections, knowledge of market demands, and ability to think outside the box to recognize and fully realize this opportunity to strategically assemble a broken condo project and reposition the asset as an apartment community.”
As part of its value-add program, Next Wave completed interior renovations of almost all units; repainted the community; revamped the pool area, club house, and fitness center; and implemented a security system.
“We feel a unique advantage in that we have been acquiring, renovating, and selling multifamily properties in this market for several years,” says Fisher. “Based on our experience and local relationships, we were able to execute strategic renovations and exceed initial projections on the value of the property, even in the midst of the unprecedented pandemic. Westover Parc Apartments will provide the buyer with an upgraded, cash-flowing asset that will provide immense long-term value.”
David Sloan, Principal at Next Wave, adds that the Phoenix has remained resilient and continues to be one of the country’s fastest-growing markets: “Strong economic development and population growth are driving forces behind this continued demand. There are a number of large companies coming to Phoenix to expand their businesses, bringing an influx of employment opportunities to the area. As a result of this, we’ve seen an increased need for high-quality multifamily housing, which has allowed us to secure premium pricing as we bring our assets full cycle.”
Westover Parc Apartments offers residents fully equipped and modern one-, two-, and three-bedroom units. The property also has a variety of community amenities including a pool, picnic areas, barbeque grills, and the security of being a gated community. The property is situated near several diverse employers, award-winning schools, and numerous retail, dining, and entertainment options.
Westover Parc Apartments is located at 6515 W. McDowell Road in Phoenix, Arizona.