TerraCap Management LLC, a privately held investment firm with its headquarters in Naples, FL, announced the acquisition of Tresa at Arrowhead Apartments, a 1998-built, 360-unit apartment complex located in the Arrowhead Ranch submarket of Phoenix, AZ.
“Tresa’s purchase profile is consistent with our deep value strategy going forward. We are excited about continuing to position our investors with assets that have defensive purchase prices, especially in growth markets in Arizona near areas with plenty of amenities and opportunities for higher wage tech jobs,” said Steve Hagenbuckle, TerraCap’s Founder and Managing Partner.
Tresa at Arrowhead features one, two, and three-bedroom units with various levels of unit interior renovations, leaving room for further upgrades to enhance the tenants’ living experiences. Amenities at the property include swimming pools, grilling stations, a game room, gated parking, a dog park, a fitness center, and a dry sauna.
Tresa at Arrowhead boasts a low-density environment in a highly infill neighborhood, as the property is centrally located in Phoenix’s Arrowhead Ranch submarket and sits on 19 acres with lakeside walking trails. The property is adjacent to the Loop 101 freeway with convenient access to the new TSMC semiconductor plant, higher-wage employment in North Scottsdale and the Westgate Entertainment District.
“This acquisition aligns with our strategy of investing in well-located multifamily assets at a meaningful discount to today’s replacement cost. At Tresa at Arrowhead, value creation is driven by proven renovation premiums at the property and across the surrounding competitive set. The asset’s scale and supply-constrained location provide additional downside protection, and we believe these factors should drive attractive risk-adjusted returns over the hold period,” added Baron Davis, TerraCap’s National Director of Acquisitions.
Matt Pesch, Asher Gunter, and Austin Groen of CBRE represented the seller in the disposition. Avenue5 Residential was hired as property manager.
