In December 2016 Sares Regis Multifamily Value-Add Fund II, L.P. acquired Salado Springs, a 144-unit Class B two-story garden-style multifamily community for $20,200,000 ($140,278 per unit).
Built in 1986 in the city of Tempe, the property is situated on 6.6 acres and within proximity to Arizona State University as well as the Mill Street light rail station, which connects residents to the greater Phoenix metro. Given the impressive condition of the exteriors for its vintage as well as performing well since acquisition, the renovation plan focused on upgrading both unit interiors and common areas which were completed under budget and ahead of schedule.
Unit interior renovations included the addition of a stainless steel appliance package, hard surface countertops, cabinet refresh, upgraded plank vinyl flooring, modern halogen lighting, and new kitchen & bath fixtures. Common area upgrades included the addition of a fitness facility in an underutilized maintenance storage space, constructing a new maintenance office and free standing shop, re-imagining the leasing center and clubhouse by creating a new space plan and upgrading furniture, upgrading the pool area, and building a package center. All planned exterior, common area, and unit interior renovations were completed with the interiors completed upon natural turnover.
Salado Springs was extensively marketed in a competitive bidding process and was sold to a private individual buyer through a 1031 exchange.