CALCAP Advisors is announcing that it has purchased its first apartment community in Nevada, followed shortly thereafter by the purchase of its thirteenth apartment community in Arizona, to combine for a total of 358 units acquired in the month of May. Pecos Pointe Apartments, a 160-unit property in Las Vegas, was purchased for $6,000,000 ($37,500 per unit/$41.72 per square foot) on May 23, 2014 through the online real estate website Auction.com. The seller was, an entity of mortgage special servicer LNR Partners, LLC. LNR acquired the property via a CMBS foreclosure in September, 2012. The address is 1650 North Pecos Road, Las Vegas, NV.
“Pecos Pointe offered us an opportunity to purchase a newer, stabilized, multi-family community significantly below replacement cost”, stated Edward Aloe, Managing Principal of CALCAP Advisors. The property was 90% leased at the close of escrow. “We intend to implement an upgraded interior amenities package, as well as adding full-size washers & dryers to each apartment home”, Aloe stated. “Additionally, we will complete a clubhouse remodel with updated furnishings and a business center, as well as making some cosmetic exterior and landscape improvements”.
Northwest Gardens Apartments, a 198-unit property in Peoria, Arizona (metropolitan Phoenix) was purchased for $9,005,000 ($45,480 per unit/$56.61 per square foot) on May 28, 2014. This was an REO that Fannie Mae acquired in 2012 with an original loan balance of $10,163,700. Ocwen Loan Servicing handled the sale of the property for Fannie Mae.
“Northwest Gardens last sold in 2007 for $14,150,000. We feel confident that our purchase price is attractive relative to its past sales history, as well as against similar properties in the Peoria/Glendale submarket”, stated Pat Wakeman, Principal of CALCAP Advisors. “We plan on upgrading the curb appeal and appearance of the property significantly via exterior painting, installing attractive drought-tolerant landscaping, remodeling the clubhouse and adding a fitness center”, Wakeman said. The address is 9350 North 67th Avenue, Peoria, AZ.
CALCAP Advisors is continuing to source multi-family acquisitions. “We’re aggressively seeking further investment opportunities similar to Pecos Pointe and Northwest Gardens. In addition to Arizona and Nevada, CALCAP is searching for properties to grow our apartment portfolio throughout the Southwest”, stated Aloe. The company has completed fourteen acquisitions totaling approximately 1,700 units in the past 42 months.