ARA is pleased to announce the rare opportunity to purchase a mid-size apartment community within walking distance (1/2 mile) from Mill Avenue and Arizona State University(ASU) in Tempe, Arizona with the availability of Parkview Apartments. ASU is the largest public university in the country and boasts an enrollment over 66,000 students with over 300 undergraduate and 400 graduate program. The community is ideally located within walking distance to ASU, the Mill Avenue District, and is within the Farmer Arts District, a neighborhood known for high pedestrian traffic, its proximity to Tempe Town Lake, Tempe Beach Park, Tempe Center for the Arts, and Sam Fox’s famous Culinary Dropout restaurant The Yard. The Tempe Location is the largest of Fox’s 40 locations across the country and is the neighborhood hotspot packed on a daily and nightly basis offering live music, food, drinks, ping pong, foosball, cornhole, picnic tables, fire pits, and dining areas both indoor and outdoor. Mill Avenue is the heartbeat of Tempe’s cultural scene and is home to ASU Gammage, one of the largest venues for performing arts in Arizona. Downtown Tempe has more restaurants concentrated in one area than any other restaurant row in the Valley. Considered Arizona’s most walkable downtown, Mill Avenue District has a thriving retail scene that is home to many boutique shops as well as national retailers. Furthermore, the Valley METRO Light Rail Station runs through the Mill Avenue District providing a tremendous benefit to residents with connectivity between the cities of Phoenix, Tempe, and Mesa.
Parkview Apartments is a 17 unit single story community that has great frontage and curb appeal on 5th Street just east of Hardy Drive. The community was built in 1961 of block construction with pitched asphalt shingle roofs, is individually metered for electricity and has individual roof mounted HVAC’s. The community consists of 2 studio units, 11 one bedroom units and 4 two bedroom units. The property is zoned R-3 and situated on 5 separate parcels totaling 31,940 SF. There has be a flurry of redevelopment activity in and around ASU in recent years and an investor has the upside and option to redevelop the property and build for sale product. Residential sales in the immediate neighborhood have been pushing $400,000.
The property is 100% occupied and a prime candidate for the implementation of an apartment interior renovation program. New ownership will have the opportunity to reposition the living spaces by upgrading the flooring, appliances, cabinets and countertops, as well as interior two-tone paint with the potential generate approximately $200+ per unit in monthly rent premiums. Neighboring communities that have been upgraded have achieved similar rent premiums by implementing similar interior upgrades. Estimated costs of this renovation package is $5-8K per unit. In addition, the property’s exterior could also benefit from select common area upgrades, with enhanced amenities and new exterior paint. Another option due to the block exterior of the property is the ability to sand-blast the exterior to provide the mid-century modern look and feel that has become popular in both single family and apartment communities drawing attention to renters and Buyers. Similar size properties that have been updated and re-branded with these improvements in Tempe have recently sold for over $150,000 per unit.
Parkview Apartments offers an investor the tremendous opportunity to acquire a single story apartment community that is strategically positioned within walking distance from Arizona State University, the Mill Avenue and Arts District that provide the perfect living experience for a young professional, college student or millennial tenant base. Furthermore, the property offers an investor both an apartment value- add potential and/or future redevelopment upside in the high demand Tempe rental and for sale market.
PLEASE CONTACT THE LISTING AGENTS TO SCHEDULE ALL PROPERTY TOURS.
The terms of the offering are as follows:
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