Security Properties has acquired The Rev Apartments, a 172-unit Class C garden-style multifamily property in Tempe, Ariz., for $28.2 million. The purchase is the company’s eighth in the Phoenix multifamily market.
The Rev Apartments, located at 3409 S. Rural Road, was constructed in 1972 as 16 residential buildings on an 11-acre site. The property was renovated by its previous owner—who was Baron Properties according to Yardi Matrix data—with upgrades including new dual-pane windows and slider glass doors, the addition of an in-unit washer/dryer unit and above range microwaves, roof upgrades and repairs and an exterior paint job. The property also offers its tenants a fitness center and an outdoor heated pool and spa.
According to Yardi Matrix data, The Rev is at a 97.7 percent occupancy rate and offers studios, one- and two-bedroom units. The rents rose each year and hit an average rent of $1,172 in 2019, the data shows.
Security said this apartment community is a longer-term yield investment and they’ll be doing upgrades like adding items to the kitchens and property’s amenities. The property will also be managed by Security Property Residential, the company’s property management division.
SIZING UP FOR SECURITY
The Seattle-based firm now owns 122 assets that total approximately 24,000 units across its portfolio.
As for Tempe, Alex Gauper, an investment manager at Security, said the area was a target submarket for the company for many years due to its employment and retail corridors. Now Security owns eight properties in the Phoenix area, totaling more than 3,200 units in the multifamily marketplace.