Clarendon Park Apartments

222 West Clarendon Avenue, Phoenix, AZ 85013

The Opportunity

  • In Q1 2017 Loewen acquired, in partnership with Rincon Partners, a 138-unit Class A- apartment located in the Midtown/Central Avenue corridor of Phoenix, Arizona on an off-market basis.
  • The property was built in 2002 and 10 units had recently been partially upgraded, which had generated significant rental premiums over “classic” units.
  • The property was self-managed by an ownership group whose only asset in Phoenix was this asset.
  • The Midtown/Central Avenue corridor of Phoenix has recently undergone significant gentrification and is conveniently located near a Valley Metro light rail station, major employers, downtown Phoenix, Arizona State University and Sky Harbor Airport.

Value-Add Strategy

  • Professional third party property management (Greystar – the largest apartment manager in the US) was installed immediately.
  • A $1.78 million ($12,900 per unit) renovation plan has begun that includes both unit interiors (all surfaces and appliances will be brought up to current Class A finishes) and exteriors (all common amenities will be updated).
  • The business plan is to target rents 15% to 20% below brand new Class A apartments becoming a “Class A value” option for tenants.
  • Target hold period is 36 months.