Phoenix, AZ Value Add Multifamily

The Willow

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Overview

Purchase Price: $7,265,000
Total Project Cost: $10,465,000
Equity Required: $2,400,000
Development Timeline: 18 months
Estimated Project Value: $16,340,000
Projected Return: 2.4 x Multiple
Purchase Date: 11/14/2018

Opportunity

Hanson Capital Group acquired 59 condominiums within an 86-unit property known then as North Point Condominiums in 2016.  Hanson Capital Group acquired the remaining 27 units through a strategic acquisition series of transactions including a condemnation process in 2018.  In place rents at the time of acquisition averaged $675.00 per unit.  

Upon acquisition, Hanson Capital Group employed professional management to run and operate the property and deployed over $3M for capital improvements and renovations to the interior and common areas.  The interior renovations included the installation of in unit washer and dryers, new flooring, quartz counters, new cabinets, stainless steel appliances, and significant upgrades to the kitchen and bathrooms.  The common areas were upgraded with fresh paint, a new pool and deck, new outdoor furniture, bocce ball and cornhole areas, a dog run, new propane grills, pavered sitting areas and the installation of a fitness center.  In addition to the capital improvements, the laundry room was successfully repositioned into a new leasing office after adding in-unit washer/dryers throughout the complex. Further repositioning included building out the 6 storage areas on the end caps of six of the buildings, into multiple smaller spaces now leased to tenants for on-site self storage, further increasing project revenues.

Current market rents for the 86 units now exceed $1,250.00 per unit, and the project carries an estimated value of $190,000 per door.

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