Greystar Real Estate Partners acquired the three-property, 845-unit Acacia portfolio located in the Phoenix metropolitan area.
The portfolio, which is concentrated in Phoenix’s affluent East Valley and comprises Chandler Court and River Ranch in Chandler, Ariz., and Vista Montana in Gilbert, Ariz., represents an opportunity for Greystar to acquire high-quality assets in rapidly growing, low-supply submarkets.
The Phoenix metropolitan has been strong economically, and will add over 60,000 new jobs this year, according to Greystar. The market benefits from a diversified employment base, having added roughly 150,000 jobs in finance, technology and health care, many of which are in the Chandler and Gilbert submarkets. Continued population growth resulting from the area’s booming economy and job market is expected to continue to drive demand for housing and increased rents.
“Phoenix continues to screen as a top performing market across the country in terms of fundamentals, and rising construction costs have made it difficult to add new supply in these highly desirable Chandler and Gilbert submarkets,” said Kevin Kaberna, executive director and leader of Greystar’s U.S. Investment platform. “We expect that our proven value-add strategy combined with robust job growth and limited supply will drive tremendous value.”
Originally built in the late 1980s, the Acacia portfolio largely features original interiors. Greystar’s value-add strategy will focus on extensive renovations to units, including hard-surface countertops, stainless steel appliances, new cabinet doors, and upgraded lighting, plumbing and hardware packages. The company also plans to upgrade the portfolio’s common areas and amenities, which include fitness centers, clubhouses, business centers, community gardens, and pools and spa areas.
As one of the nation’s largest apartment operator with 490,000 units under management, Greystar owns around 970 units in the Phoenix area and manages 24,560 more. Greystar will continue to leverage its local market expertise and deep industry relationships to identify attractive investments and management opportunities throughout the Phoenix area.
