Brentwood Apartments Phoeniz, AZ.
San Francisco, CA
About this Property
Pacific Real Estate Partners, in a joint-venture with Barker Pacific Group, is presenting the opportunity to acquire an off-market 224-unit garden-style apartment community for $10,100,000 or $45,000/unit. The property has been owned and managed by the same partnership since 2008. Even though the property is 95% occupied, it is significantly undercapitalized and under-managed. There is a significant opportunity to reposition the property to maximize its value.
The existing cap rate is 5.79% based on historical income and normalized expenses. There is embedded value in under market rents and a premium to reposition the property. The current occupancy provides in-place cash flow while the value-added business plan is executed.
The property was not marketed for sale, and the pricing was negotiated directly with the ownership.
- In place cash flow with cap rate of 5.7% while value added strategy is executed
- Significantly under replacement cost: purchase price approximately 33% of replacement cost
- Under managed property with strong upside potential
- Off-market acquisition: pricing negotiated directly with ownership
- The Sponsor has previously closed two transactions on the RC platform and has made $1.5M available for this investment. The principals will invest 10% of the equity and its existing investors have already committed over $1.1M of equity.
Close proximity to a major shopping center, Metrocenter Mall, including nationally branded retailers such as Dillard’s, Sears, and Harkins Theaters. Also, on the east side of I-17 is 2.7 million square feet of office space resulting in over 35,000 jobs from approximately 3,500 employers just 3 miles from the property.
- MSA Rank 12
- Median Income $51,847
- MSA Population 4,398,762
- Population Growth 4.91%