L.A. based firm purchases the 180-unit multifamily property for $8.1 million
LOS ANGELES/PHOENIX – March 25, 2014 – (RealEstateRama) — BH Properties, a Los Angeles-based firm that specializes in acquiring and repositioning challenged or distressed real estate properties, has purchased the Papago Crossing apartments in Phoenix for $8.1 million. The move further advances the firm’s investment strategy in the region.
BH Properties has significantly expanded its Southwest portfolio, with primary sales spanning the multifamily and retail categories. Papago Crossing, which is located at 4530 E. McDowell Road in Phoenix, marks the ninth multifamily property in Arizona that BH Properties has acquired in the last 24 months.
“The acquisition of Papago Crossing is consistent with our overall investment objectives for the region,” said Steve Jaffe, executive vice president and general counsel for BH Properties. “While the bulk of our investment strategy in Phoenix has been in multifamily, we’re branching out and looking at more opportunities in retail and industrial markets; in fact we just recently completed sizeable retail transactions in the area as well.”
The firm has just completed its fourth retail transaction in Arizona, including Ross Plaza in North Phoenix and Gilbert Town Center, a Class A retail center in the affluent Phoenix submarket of Gilbert, Ariz.
The all-cash transaction was brokered by Tyler Andersen, Sean Cunningham, Asher Gunter and Matt Pesch of CBRE Phoenix.
“This transaction is another testament to the health of the Valley’s multifamily market,” said CBRE’s Anderson.
“Papago Crossing is centrally located in Phoenix, within the Discovery Triangle area of the metro area. This area will continue to thrive due to its numerous employment centers, the presence of Arizona State University and its convenient central location which allows for easy access to highways, shopping centers and other amenities. When you consider these benefits in addition to the quality of the property and the opportunity for rent growth, Papago Crossing is a solid investment for the buyer.”
At the end of 2013, BH Properties had completed $100 million in transaction volume and $82 million in acquisitions, a 57 percent increase over the previous year’s results. Since 2012, BH Properties has acquired 24 properties in the west and southwest regions.
Overall, the company acquired properties in all of its major disciplines – multifamily, retail, office and industrial — and will continue to keep its “value-added” focus in its core markets including Arizona and California. This past year also saw the firm move back into the Denver and Texas markets in acquisitions where two properties were purchased. Additional purchases in those two regions are expected this year.
Founded in 1997, BH Properties is a Los Angeles-based commercial real estate investment company that focuses primarily on troubled assets in the industrial, multi-family, office and retail markets. With regional offices in Dallas and Salt Lake City, BH Properties has developed its own distinctive acquisition strategies in 18 states and become one of the repositioning experts in its core markets including California, Arizona, Nevada, Utah, Colorado, and Texas. For more information, please call (310) 820-8888 or visit www.bhproperties.com.