Multifamily investment firm ZMR Capital, based in Orlando, Florida, has entered the Phoenix market with the off-market acquisition of the 112-unit District Flats Off Dobson in Mesa for $18.2 million.
This marks ZMR Capital’s first acquisition in Phoenix. The firm, which owns approximately 4,000 multifamily units in Florida, Georgia, and Texas, plans to grow its Phoenix portfolio quickly.
The multifamily community, 16 miles east of Phoenix, benefits from its proximity to Mesa Community College and downtown Mesa’s Fiesta District, a $500 million redevelopment project that includes new commercial office space and a mix of restaurants, retail, hospitality, and entertainment.
Built in 1975, the property provides a value-add opportunity for ZMR Capital. The majority of District Flats Off Dobson’s studio and one-bedroom units haven’t been significantly renovated over the years, and the firm plans to make improvements to the interiors as they turn over. Unit improvements will include upgraded countertops and cabinetry, stainless steel appliances, and new plank flooring. In addition, exteriors will be renovated to improve curb appeal.
While Phoenix has seen an increase in multifamily construction, the supply will not keep pace with the demand, said ZMR Capital CEO Zamir Kazi, who led the firm’s acquisition team along with vice president Colt Connor.
“The majority of the 20,000 units being built in Phoenix is the expensive luxury product catering to the high end of the renter spectrum,” said Kazi. “As one of the most affordable markets in the Phoenix MSA, Mesa continues to be an attractive option for renters. At our cost basis, we will be able to improve the overall character of the property while still keeping rents in line for the majority of renters in or moving to Mesa.”
Cliff David, executive managing director in Institutional Property Advisors’ Phoenix office, marketed the property on behalf of the seller.