SB Real Estate Partners (SBREP) has acquired East 3434 Apartments, a Class B, 128-unit garden-style apartment community located in Phoenix, Ariz., for $27.5 million. The property has been renamed Portola at Papago, and SBREP intends to execute a $2 million capital improvement program.
The acquisition follows SBREP’s recent purchase of Portola East Mesa for $24.3 million as part of its overall plan to acquire more than $200 million in apartment assets by year’s end across the Phoenix, Las Vegas and Inland Empire markets. SBREP already has roughly 1,000 apartment units under ownership in the Phoenix area.
“We’re excited to enter the Papago area, which we think will continue to thrive as a natural extension of Arcadia. The acquisition of Portola at Papago represents yet another significant value-add opportunity as SBREP continues to build out its portfolio in Phoenix,” said Srijin Bandyopadhyay, Founder & Managing Principal at Irvine, California-based SBREP.
Located at 3434 East McDowell Road, Portola at Papago was built in 1985 and offers one- and two-bedroom units ranging from 650 square feet to 850 square feet. Community amenities include a swimming pool, picnic and courtyard BBQ area, controlled security access gating and a children’s playground area.
The community is located near several major freeways including Interstate10, State Route 51 and Loop 202. The property’s central location offers its residents convenient access to various job corridors across Downtown and Central Phoenix, Scottsdale, Mesa and Tempe.
Brian Smuckler, Jeff Seaman, Derek Smigiel and Bryson Fricke of CBRE represented both the buyer and the seller, a Los Angeles-based group with assets in Phoenix and Tucson.
Chinmay Bhatt, Noam Franklin and Cody Kirkpatrick of Berkadia JV Equity & Structured Capital arranged joint venture equity.