Pathfinder Partners, a San Diego-based firm specializing in opportunistic and value-add real estate investments, has added two Phoenix properties valued at more than $32 million to its growing multifamily portfolio, including the Vintage Apartments in Gilbert, acquired for $18.6 million and Avalon Apartments in Northeast Phoenix, purchased for $13.7 million.
Originally constructed in 2000 as condominiums, Vintage is a 107-unit garden-style community located at 1303 West Juniper Avenue, in Gilbert, Arizona, southeast of Downtown Phoenix. The 9.3-acre property includes a resort-style pool and spa, a clubhouse with a theatre, business center playground and billiards room as well as six studios, 21 one-bedroom/one-bathroom, 40 two-bedroom/two-bathroom and 40 three-bedroom/two-bathroom units, averaging 1,150 square feet. Pathfinder plans to rebrand the community, complete comprehensive renovations to all unit interiors and make common area improvements – including new paint, landscaping, signage and upgrades to the pool, clubhouse, leasing office and fitness room and installation of a package center and bark park.
Avalon, a 117-unit multifamily community, is centrally located at 3851 N. 28th Street near the 24th and Camelback corridor. Built in 1973, the 3.5-acre community encompasses seven two- and three-story garden-style buildings. Amenities include barbecue and common areas, a resort-style swimming pool, fitness center and dog park as well as newly installed solar energy panels and covered parking. Pathfinder plans to enhance the property’s appeal with new exterior paint, upgrades to the façade, improvements to the common area gathering spaces and a comprehensive renovation to all unrenovated unit interiors.
According to Lorne Polger, senior managing director of Pathfinder Partners, his firm has been bullish on Phoenix for many years. “Phoenix enjoys a highly diversified economy that is among the fastest growing in the nation, driven by strong population growth and the in-migration of many employers – factors which have contributed to very strong apartment demand,” he said.
“There’s a hole in the market for upgraded, suburban apartments at lower rents and we can create considerable value at these properties by upgrading them, improving management, adding desired amenities and renovating interiors, while offering affordable rents. Both properties are prime examples of Pathfinder’s value-add apartment renovation and repositioning strategies.”
Pathfinder has been quite active in Arizona since 2011 with 14 acquisitions and eight dispositions. The Vintage transaction was brokered by David Fogler and Steven Nicoluzakis of Cushman & Wakefield. The Avalon transaction was brokered by Trevor Koskovich, Bill Hahn and Jeffrey Sherman of HSK Multifamily Colliers International.