SEATTLE, Sept. 14, 2016 –On September 8, 2016, Security Properties purchased Arches at Hidden Creek, a 432-unit multifamily property located in Chandler, AZ for $55,000,000. SP now own five assets in the Phoenix marketplace.
Arches at Hidden Creek is located within the dynamic Chandler submarket. Chandler’s median annual household income is approximately $71,000, 32% higher than Maricopa County, which covers most of the Phoenix MSA. Chandler’s greatest strength is its employment base. Arches sits within five miles of 70,000 jobs in industries that include high-tech manufacturing, aerospace, bioscience, and advanced business services. Because of the city’s central location and proximity to three freeways, it can pull from more than 1.7 million people within a 30-minute commute. The Price Road Corridor is the area’s largest and most established employment center. Silicon Desert, as it is known, is located just one mile southwest of Arches.
The property is also within close proximity to the ASU Research Park (15,000 jobs), Arizona Avenue Business Parks (20,000 jobs), Downtown Chandler (5,000 jobs) and the Chandler Airpark (5,000 jobs). Less than 3 miles directly to the west of Arches lies the Chandler Fashion Center, an upscale, super-regional mall that encompasses over 180 stores and roughly 1.2M SF. The mall is widely considered the premier shopping destination in metropolitan Phoenix’s Southeast Valley and is anchored by Nordstrom, Dillard’s, Macy’s and Sears.
Arches at Hidden Creek is a garden-style apartment community that was constructed in 1986.
The business plan is a moderate value-add. To date, 133 units have been upgraded throughout the property. Interior upgrades include: faux wood flooring, baseboards, black appliances, faux granite countertops, new cabinet fronts with hardware and painted cabinet boxes to match, light fixtures, two-tone paint, ceiling fans and updated hardware and plumbing fixtures. SP plans to continue this rehab strategy by renovating the remaining 299 original units to a similar interior scope.
According to Davis Vaughn, Director at Security Properties, the acquisition was made because, “Arches at Hidden Creek offers everything we look for in an investment. The Chandler job story is one of the best in all of Phoenix plus the location gives residents easy access to retail and enrollment in the top-rated Chandler school district. With a basis well below replacement cost, we expect to produce outstanding risk-adjusted returns to our investors with this purchase.”
The property will be managed by Security Properties-affiliate Madrona Ridge Residential.
About Security Properties
Security Properties is a national real estate investment, development, and operating company headquartered in Seattle, Washington. For more than 45 years, Security Properties has provided quality housing to its residents as well as excellent financial performance for its investors. Since its founding, Security Properties has acquired or developed over 66,500 residential units at a cost of over $3.35 billion. Security Properties maintains a focused multi-family strategy supported by integrated teams of professional acquisition, development, construction, investment, and property management specialists. For more information, visit www.securityproperties.com