Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced the sale of 134-unit Sakara Tempe and 36-unit Sakara Villas at Tempe in Tempe, Arizona. Together, the properties sold for $30.5 million, which represents $178,363 per unit.
“Located at the doorstep of Arizona State University, these garden-style apartment communities offer two of the remaining cost-effective price points near campus,” said Cliff David, IPA executive managing director. “Residents enjoy more favorable rent economics in comparison with the towering purpose-built student housing alternatives and traditional Class A market-rate communities that surround the properties and permeate North Tempe. Sakara’s rent affordability measured against North Tempe’s best-in-class housing stock and the nearly 70,000 employees and 2,000 total business in the surrounding area make it ideal for the implementation of a comprehensive renovation strategy.” David and IPA executive managing director Steve Gebing represented the seller, GoodLife Housing Partners, a student housing and apartment investment firm based in Los Angeles, California founded by principals, Rohan Gupta and David N. Fong. Cliff David and Steve Gebing also procured the buyer, Capital Allocation Partners, Nathan Reid, principal.
“We are truly excited about the sale of the Sakara portfolio as it represents a successful exit and execution of our value-added renovation business plan for the property after acquiring it three years ago for approximately $20.8 million,” stated Fong.
Built in 1968, the properties are within walking distance of Arizona State University and the University Drive/Rural Road Transit Center. There is over 4 million square feet of retail and dining within a three-mile radius of the communities, including Downtown Tempe, Tempe Marketplace, and Mesa Riverview/Sloan Park. Loop 202, Loop 101, and U.S. Route 60 are also within three miles of the two properties.
Sakara Tempe and Sakara Villas at Tempe feature one-, two- and three-bedroom apartment homes. Select apartments have new laminate kitchen countertops, wood-style vinyl flooring, and two-tone paint with accent walls. Some of the units are furnished for the convenience of students. Common area amenities at Sakara Tempe include a resort-inspired swimming pool with cascading water features and poolside cabanas, a fitness facility, bocce ball court, and an outdoor television lounge.