SB Real Estate Partners (SBREP) has completed the sale of a two-property, 365-unit multifamily portfolio in Phoenix, Arizona to Rise48 Equity for $96.4 million.
The sale, structured as separate transactions closing two weeks apart, included the 141-unit Portola at Grovers Park in North Phoenix and the 224-unit Portola West Valley in West Phoenix. SBREP, which has built a sizable portfolio of approximately 1,500 units in Phoenix since entering the market in 2018, acquired both communities during the second half of 2020.
“We’re proud of the significant value we were able to create by substantially repositioning our Grovers Park and West Valley properties over a relatively short period of time,” according to Srijin Bandyopadhyay, Founder & Managing Principal of SBREP. “While we continue to remain bullish as active buyers in the Phoenix multifamily market, we were also willing to adapt to the capital markets and round out a shorter-term business plan in order to deliver tremendous results to our investors.”
Rise48 Equity plans to spend over $8 million to renovate the exterior and interiors of both properties and rebrand Portola at Grovers Park as Rise on Cave Creek, and Portola West Valley as Rise at Estrella Park. Improvements to both properties will include fresh three-tone exterior paint scheme and new monument signs with an LED backlight to improve the curb appeal. In addition, Rise48 will renovate 100 percent of the unit interiors across the portfolio to the Rise48 Equity Platinum level finish as well as upgrade common area amenities.
Both properties were built in 1985 and feature a mix of one- and two-bedroom floorplans. The apartment homes at Portola at Grovers Park, located at 17646 N Cave Creek Road, range in size from 550 square feet to 850 square feet. Community amenities include two swimming pools and two laundry facilities. Portola West Valley, located at 1801 N. 83rd Avenue, feature larger floor plans averaging 892 square feet. Community amenities include a swimming pool and spa, lighted sports court, gazebo with barbecue grill and updated clubhouse.
Cliff David and Steve Gebing of IPA represented SBREP for the Portola at Grovers Park transaction. David Fogler and Steven Nicoluzakis with Cushman & Wakefield’s Multifamily Advisory Group in Phoenix represented SBREP for the Portola West Valley transaction.