Villa Fifty2 Townhomes - Investment Opportunity

Asset type: Apartment · Location: Phoenix, Arizona

Off-market opportunity to purchase Villa Fifty2 Townhomes, a 49-unit / 2023 construction townhome community (avg. unit size of 1,700 sq ft) located in the Central-East submarket of Phoenix. SBREP is rounding out its $6M equity raise in order to close the transaction in August. Seller is a smaller, local developer who's construction loan is maturing in August. Seller originally listed the Property at $19.6M and was under contract with a 1031-exchange buyer, who fell out due to interest rate volatility. SBREP is currently under contract at $18.25M or ~$372k/door ($219 / sq ft), which is a going-in 5.9%-cap on SBREP operating expenses. The purchase price of $219 / sq ft represents at least a ~27% discount to replacement cost, as equivalent townhome build today would cost in the range of $300 - $350 / sq ft.