NorthMarq brokers sale of the partially affordable Arcadia Lofts
The 63-uinit Arcadia Lofts Apartments, located near 40th Street and North of McDowell Road, sold on November 2 for $8,500,000.
NorthMarq’s Phoenix Investment Sales team led by Ryan Boyle, Trevor Koskovich, Jesse Hudson, and Bill Hahn, arranged the sale and represented both buyer and seller in this transaction.
Ripe Assets Management, LLC of Colorado was the buyer. This was Ripe Assets’ second Phoenix acquisition.
“Arcadia Lofts was a prime opportunity to purchase a recently renovated asset and continue the proven value-add program,” said Boyle, Senior Associate at NorthMarq. “The sellers invested over $700,000 to reposition the property, leaving approximately 38% of interiors in original condition for buyer to upgrade to their liking. The strong submarket dynamics coupled with opportunity to recapture loss to old lease on the increased maximum allowable affordable rents made this an intriguing investment for the buyer.”
The seller was a partnership between Southern California-based Westgrove Partners and The Grupe Company. Westgrove, a private real estate investment company focused on multifamily acquisitions in the Western U.S., is led by principals Christian Meier and Taylor Fijan. This was the third asset that Westgrove has sold in the Phoenix market during the past 12 months. “Arcadia Lofts was a perfect example of how a creative and well-executed business plan can unlock a great deal of value in a short amount of time,” said Fijan. He continued by saying, “Despite our recent disposition activity, Westgrove is still very much in acquisition mode and is actively seeking new opportunities in Arizona, as well as our other target markets throughout the West.”
Westgrove’s principals have collectively contributed to the acquisition and management of over 25,000 units since 2008. By utilizing its principals’ backgrounds, Westgrove Partners implements an institutional level approach to asset evaluation, due diligence, investor relations and ongoing asset and construction management. More information can be found at their website.
The 63-unit Arcadia Lofts apartment community, built in 1981, comprises 62 percent one bedroom units and 38 percent two-bedroom units. The property, located on the west side of 40th Street and north of McDowell Road, is situated in the dynamic Arcadia Lite submarket. It is conveniently located within a few miles of several of the most dynamic economic areas of the metro Phoenix area including the city of Tempe—home to Arizona State University, and a student population of more than 50,000 students at the Tempe campus. In addition to being only a few miles from the largest university in the country, Arcadia Lofts is located in the middle of several prominent office submarkets, making the property a convenient landing spot for a large local workforce. The property is located at the western boundary of the 44th Street Corridor office submarket, straddling the border to the Midtown/Central Phoenix submarket. Arcadia Lofts is also located a few miles from the Camelback Corridor, which is home to some of the Phoenix area’s most prominent employers, as well as a few miles west of Old Town Scottsdale, an area known for high-end shopping, dining, and night life.