Acquisition frenzy is in full force in the sunbelt and the Phoenix market is no exception.
A recent acquisition tipped California Capital Real Estate Advisors, or CALCAP, to own more than 1,000 units in the local market. Pasadena-based CALCAP acquired 274 units with the purchase of Desert Sky Village in Phoenix.
Edward Aloe, CALCAP's managing principal, says the property was purchased from First Financial Bank and was underperforming, according to a news release. The company plans to make many renovations to the property and individual units.
“Desert Sky was one of the last lender-owned opportunities in this economic cycle, which made it especially attractive as an investment,” Aloe says.
As one of the hardest hit real estate markets during the Great Recession, properties were poised to be priced well in the aftermath, he said.
“We believe that places like Phoenix will provide consistent job growth, affordable housing and good long term prospects for population growth as aging Baby Boomers continue to move there,” he says.
The company plans to continue expanding into Arizona over the two years, the release states.
Lindsay Machak is an Assistant Editor for Multifamily Executive. Connect with her on Twitter @LMachak.