SB Real Estate Partners Plans To Spend $2 Million To Renovate Apartments Near Downtown
Multifamily investment firm SB Real Estate Partners paid $27.5 million, or $214,844 per unit, for a garden-style apartment complex on Phoenix’s east side as out-of-state buyers are increasingly drawn to the fast-growing market.
The 128-unit property at 3434 E. McDowell Road, previously known as the East 3434 Apartments, was renamed Portola at Papago by the Irvine, California-based buyer. SB Real Estate Partners plans about $2 million in improvements and updates, it said in a statement.
The purchase from Manhattan Beach, California-based real estate investment firm Break of Day Capital comes after SB Real Estate’s recent purchase of Portola East Mesa for $24.3 million.
The deal also comes as apartment sales have accelerated over the past few months after slowing substantially early in the pandemic as investors from California and other states buy properties in East Phoenix, according to CoStar Market Analytics.
SB Real Estate Partners said it planned to scoop up more than $200 million in apartment assets year in Phoenix, Las Vegas and Southern California’s Inland Empire markets by the end of the year. The firm already owns roughly 1,000 apartments in Phoenix.
The property, with one- and two-bedroom units ranging from 650 square feet to 850 square feet, was built in 1985.
For the Record
Brian Smuckler, Jeff Seaman, Derek Smigiel and Bryson Fricke of CBRE represented both the buyer and the seller, which has assets in Phoenix and Tucson.