FOUNTAIN HILLS, AZ – 29th Street Capital (29SC), a privately-held real estate investment and advisory firm, in conjunction with Clear Sky Capital, has bought Ridge View Apartments, a 150-unit apartment complex in Fountain Hills, Arizona.  29SC’s strategy is to invest $810,000 worth of renovations to significantly upgrade the interiors and to enhance the exteriors of the property. 

“This is the fifth acquisition we have made in the Phoenix/Scottsdale market in just over one year, with another property under contract in the East Valley, closing later this quarter,” said Dusty Eddy, 29SC’s Vice President of Acquisitions for Phoenix, Las Vegas and San Diego. “We are excited about the opportunity to buy a quality asset, with plenty of value-add potential, in such a desirable location.” 

Ridge View Apartments resides within the city of Fountain Hills, an affluent suburb northeast of Scottsdale. Ridge View is just minutes east of the Loop 101, which provides access throughout the entire metro area and is conveniently located near some of the largest and most desirable job centers in the Valley including the Scottsdale Airpark, the “Cure Corridor,” and Downtown (Ancient Town) Scottsdale. Arguably the best submarket in the Valley, the North Scottsdale/Fountain Hills area has experienced reduced rental vacancies (currently at 4.5%) and rental growth of 7% over the last 12 months.  Although this has spurred some new development in North Scottsdale, new apartment developments in Fountain Hills are very unlikely, as the municipality has enacted several restrictions on development. As it stands, Ridge View enjoys a protected rental market as one of the only right apartment buildings of its size and quality in the city.

Strong population growth and job creation in the Phoenix/Scottsdale area has made a tight rental market, as limited housing supply hasn’t kept up with increases in demand.  29SC seeks to provide affordable rental housing options for workforce housing in the prosperous city of Fountain Hills where the median home value is more than $400,000.

The new owners will renovate interiors and common areas to better compete with other properties in adjacent Scottsdale. 29SC will invest $810,000 ($5,400 per unit) to enhance the existing amenities, including renovating the clubhouse and pool area, and to update the interiors to capitalize on the current demand for higher quality housing.  The property is perfectly positioned for 29SC to capitalize on the positive momentum in the market through the upgrade program. The transaction closed April 14.

29SC bought the property in partnership with Clear Sky Capital, which provides private equity investments in real estate. Headquartered in Phoenix, it has extensive expertise in multifamily real estate. 

29th Street Capital has bought nine multifamily assets over the past 12 months in markets including Houston, Texas, Denver, Colorado, Durham, N.C. and Oakland, California.  It is also actively pursuing additional opportunities throughout the U.S.  The firm will continue to target smaller value-add deals, which are below the institutional radar, with the intention of offering its investors above-market returns.  

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NEW YORK, NY – Hunt Mortgage Group, a leader in financing commercial real estate throughout the United States, announced it provided a $4 million Freddie Mac Small Balance loan to refinance a mixed-use retail and multifamily property located in East Boston.

Parkside Landing consists of 16 apartment units and one retail space contained in two, four-tale apartment buildings. The property was bought by the current owner in 2013, who converted the property from a pure multifamily property to its current mixed-use retail configuration.

The loan is 10-year fixed with 30-year amortization, after three years of interest only, and step-down prepayment schedule. The borrower is Parkside Landing Maverick, LLC, a Massachusetts limited liability company backed by three key principals with significant experience. 

“The clients are repeat Freddie Mac and Hunt Mortgage Group customers,” clarified Hayley Suminski, Vice President at Hunt Mortgage Group. “Late last year we financed Chelsea Street Apartments, a 12-unit multifamily property located in East Boston.   Together, this group of borrowers have more than thirty years of experience in developing, owning and managing multifamily real estate.” 

“Construction on Parkside Landing was completed in 2015 and the property is performing well with the current occupancy rate at 100%” added Suminski. “We were pleased to partner again with these experienced local investors on a deal in the heart of Boston.”

The deal was brokered by Tom Welch, Jeanette Gaede and John Poole of Colliers.

Parkside Landing consists of 650 square feet of retail space; one studio apartment; four one-bedroom, one-bathroom units; nine two-bedroom, one-bathroom apartments; and two three-bedroom, two-bathroom units with a total net rentable area of 14,106 square feet.

The property is located in the submarket known as East Boston, located approximately one mile northeast of Boston’s central business district.  The neighborhood is best characterized as a mixture of residential and industrial development with gentrification taking place and most residents working in the City of Boston, or in the surrounding community.

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HOUSTON, TX – Tarantino announced the expansion of their extensive portfolio, further solidifying their presence as a real estate management firm with national coverage.  This latest expansion covers 12 states with 38 new management properties in the multifamily division, including senior living.

The new properties are located throughout the southern United States, specifically in Arizona, Nevada, California, Georgia, South Carolina, North Carolina, Florida, Alabama, Oklahoma, Missouri, Louisiana and Virginia.

Tarantino has successfully operated hundreds of thousands apartment units, and is continuing to grow year after year.

“We are ecstatic about our growth as it is a reflection of our fantastic commitment to our clients. Our success can be attributed to our dedicated and long-term staff, many of whom have been with us for 20-30 years.” said Anthony Tarantino, President and sole owner.

They are expected to take these properties to the next level, with their hands on management approach focused on delivering maximum value to the multiple clients within this portfolio.

Tarantino Properties, based in Houston, TX is a full-service real estate company specializing in income-producing real estate. They have a full complement of quality services including management, brokerage, leasing, and construction services for commercial, retail, and multi-family. The company currently manages over $2 Billion in assets throughout the United States.

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