March 08, 2016
SCOTTSDALE, ARIZ. – Transwestern’s Arizona Multifamily Investment Services Group today announces it brokered the sale of Winfield of Scottsdale, a 95-unit apartment community comprised of nine buildings located at 8021 E. Osborn Road in Scottsdale, Arizona. Transwestern Vice President Jack Hannum and Senior Associate Derek Iannelli represented the undisclosed seller in the
$13 million sale, or $136,842 per unit, to The tanbic Co., a real estate private equity firm.
“The previous owner infused $3.7 million, or $39,000 per unit, in capital improvements, making it one of the most updated communities in the market,” said Hannum. “When the core-plus asset hit the market, it was already generating returns that value-add investors expect to see only after a repositioning, and the low leverage makes it even more unique as breakeven occupancy is only 52 percent. The community’s deeper value-add potential and low risk nature of the deal made Winfield an ideal candidate for The tanbic Co.’s first acquisition.”
Currently 99 percent leased, Winfield presents a compelling value-add opportunity to increase rents from both operations and infusing value-add capital. The South Scottsdale submarket where Winfield is located is currently experiencing a 4.8 percent vacancy rate with annual net effective rent growth of 5.1 percent for communities build before 1980.
“Winfield fits perfectly within our capital preservation model, yet there are still revenue-enhancing opportunities,” said Tanner Bickelhaupt, founder of The tanbic Co. “The property will benefit from its location only a mile from Old Town Scottsdale and our planned capital upgrades to embrace Winfield's sophisticated midcentury modern architecture."
Completed in 1978, Winfield’s concrete and block construction provides energy efficient units with lower utility costs than most newly constructed communities in the area. Recent renovations include new roofs, HVAC systems, high-quality synthetic stucco, resort-style pool, contemporary custom wood front unit and replacement of plumbing supply and waste lines.
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