The Milestone Group Acquires Two-Asset Portfolio Totaling 448 Units in Phoenix
January 21, 2021
January 21, 2021
Dallas — An affiliate of The Milestone Group (“Milestone”) acquired two multifamily assets, representing 448 units, through a recapitalization valued at approximately $85 million. Both properties are in high growth suburban locations within the Phoenix metropolitan area with Springs at Alta Mesa in Mesa, AZ, and Pavilions at Arrowhead in Glendale, AZ (collectively the “Properties”).
Milestone was attracted to the recapitalization opportunity because it aligns with the firm’s core acquisition strategy to purchase well located properties that offer significant value creation potential. Milestone believes that by upgrading the common area spaces and implementing a comprehensive unit interior renovation program, the firm can revitalize the Properties from their original 1997 and 1999 construction to best-in-class assets that will capture significant growth through increasing resident demand.
“A substantial number of units with these properties have original finishes and continue to be in great demand in the growth-oriented Phoenix marketplace,” says Jim Duey, Milestone’s Vice President of Acquisitions. “We expect to leverage the strong demand dynamics of the market with a thorough renovation effort to deliver a best-in-class rental alternative.”
Milestone now owns three properties in the Phoenix market. The firm previously acquired the 715-unit Bella Mirage apartment community in Avondale.
“Phoenix has been and will continue to be a primary target market for us,” Duey adds. “We strongly believe that the job growth and population growth will continue drive significant housing demand, creating growth for our properties in the market.”
About the Properties
Springs at Alta Mesa, 1865 N. Higley Road, is a 200-unit garden style apartment community featuring a mix of studio loft, one-, two- and three-bedroom apartments. Pavilions at Arrowhead is a 248-unit garden style apartment community featuring a blend of one- and two-bedroom units.
The Properties offer a variety of community amenities and standard unit finishes. Springs at Alta Mesa features two swimming pools and a hot tub, a clubhouse and fitness center, racquetball court and movie theater. Amenities at Pavilions at Arrowhead include a pool and clubhouse with a spa and hot tub, a sundeck, fitness center and gas grilling area. All units in the community have desirable layouts and with standard appliances and finishes, including washer and dryer connections. Milestone believes that this combination of factors makes the Properties outstanding candidates for renovation programs that will enhance the long-term marketability and value of the assets.
The Milestone Group is a leading, privately held real estate investment management firm with strong expertise and focus on value-add multifamily assets in major metropolitan markets of the United States. Founded in 2003, Milestone has created trust and confidence with its investors through successfully navigating multiple economic cycles, maximizing returns for investors across approximately $8 billion of multifamily investments totaling more than 80,000 units. Milestone invests through a series of discretionary equity funds and has corporate offices in Dallas, TX, Boca Raton, FL, and Atlanta, GA. For more information, please visit www.milestonegp.com or contact email@example.com.