Greystar Real Estate Partners, a global investor, developer, and manager of rental housing properties, has acquired the three-property, 845-unit Acacia portfolio on behalf of its real estate funds. A price was not disclosed.
The portfolio, which is concentrated in Phoenix’s affluent East Valley and comprises Chandler Court and River Ranch in Chandler, and Vista Montana in Gilbert, represents an opportunity for Greystar to acquire high-quality assets in rapidly growing, low-supply submarkets.
Originally built in the late 1980s, the Acacia portfolio largely features original interiors. Greystar’s value-add strategy will focus on extensive renovations to units, including hard-surface countertops, stainless steel appliances, new cabinet doors, and upgraded lighting, plumbing and hardware packages. The company also plans to upgrade the portfolio’s common areas and amenities, which include fitness centers, clubhouses, business centers, community gardens, and pools and spa areas.
The Phoenix metropolitan area is experiencing explosive growth, and is expected to lead the nation in employment by adding more than 60,000 new jobs this year. “Phoenix continues to screen as a top-performing market across the country in terms of fundamentals, and rising construction costs have made it difficult to add new supply in these highly desirable Chandler and Gilbert submarkets,” said Kevin Kaberna, executive director and leader of Greystar’s U.S. Investment platform. “We expect that our proven value-add strategy combined with robust job growth and limited supply will drive tremendous value.”
Greystar has 490,000 apartment units under management, currently owns approximately 970 units in the Phoenix area and manages 24,560 more.