Western Wealth Capital continues to expand its U.S. multifamily portfolio in large chunks, with the acquisition of Onnix, a 659-unit apartment community in one of its favourite markets, Tempe, Ariz.
The 30-acre property sold for $154.5 million (all figures Cdn) according to broker International Property Advisors, which was marketing the property on behalf of Salt Lake City-based Bridge Investment Group. That’s about $234,500 per unit.
Onnix was originally constructed in 1984 and features 38 apartment buildings, in addition to abundant parking. It’s located at 1500 E. Broadway Rd.
The community offers studio, one- and two-bedroom apartments with vaulted ceilings, oversized closets, private balconies or patios, granite countertops in kitchens, wood-style flooring and stainless steel appliances.
Onnix amenities include four resort-style pools with hammocks, barbecue grills, cabanas, a clubhouse featuring a full kitchen, large-screen TV, full-size pool table and shuffleboard as well as a sauna, dog park, yoga studio, tennis courts and sand volleyball courts.
Onnix near ASU, jobs, entertainment
The property is located about five kilometres from Arizona State University (ASU), and proximate to some of the top employers in the state. It’s also close to the popular Mill Avenue District and its restaurants and numerous entertainment options.
“One goal of this acquisition is to add value to the community as we maximize returns for investors and create an even better place to live for residents,” said WWC CEO Janet LePage in announcing the acquisition.
“Upgrades are planned for the property’s common areas to heighten their usability and desirability, which is part of the partnership’s focus on community engagement and resident programs.
“We are thrilled to add Onnix to our growing national portfolio.”
The property also offers WWC a couple of management options.
“Onnix’s low-density construction gives it the flexibility to be bifurcated into a potential 375-unit Onnix West and an Onnix East of 284 units,” said IPA executive managing director Cliff David in a separate announcement.
“Proximate to 18 employment corridors and 600,000 skilled professionals, Onnix is representative of the preference for highly amenitized, well-connected locations supported by expanding employment and educational opportunities,” added Steve Gebing, IPA’s executive managing director.
“The community’s location near Tempe’s innovative mixed-use developments supports its prospects for long-term economic vitality.”
About Western Wealth Capital
WWC says in its release Tempe has recently benefited from significant job creation, as financial services and technology companies relocate into the market.
WWC’s U.S. rental portfolio includes real estate in Houston, Dallas, Phoenix, Atlanta and San Antonio. The acquisition also marks WWC’s 54th acquisition in the Phoenix-area market.
WWC, which is based in Vancouver, has acquired more than 77 multifamily properties in the U.S. Most of those purchases have been completed since 2016.
“WWC has identified the Phoenix market as continuing to meet all of the attributes of its business strategy and disciplined investment criteria,” the company states in its release.
“The Phoenix market shows both job and population growth that are driving both vacancy rates and rental prices in an environment with a large inventory of undervalued and underperforming multifamily properties.”
“We continue to acquire multifamily communities in the Phoenix area as the Valley has been a key market for WWC for many years,” added LePage.
Since its inception, WWC has successfully completed more than $2 billion in real estate transactions.