On October 16th, 2019, Paragon Outcomes partnered with Westmount Realty Capital to acquire 949 at the District, a 154-unit multifamily community in Mesa, Arizona, located within the Phoenix MSA. The acquisition of 949 at the District represents an opportunity to acquire a well-constructed, 1979-vintage multifamily property with significant value-add potential. Planned in-unit renovations include resurfaced counters, stainless steel appliances, refaced cabinets, faux-wood flooring, upgraded lighting and new hardware. Additional improvements will include smart home technology for residents, which will include a smart thermostat, smart lock and USB outlets. Property amenities also include two large swimming pools, an attached clubhouse and leasing office, fitness center, outdoor grilling stations, an on-site dog park, restricted entry and covered parking.
949 at the District is less than a mile from Mesa’s revitalized Fiesta District, an important business district. The Fiesta District is currently undergoing a $500 million redevelopment transformation to create a more vibrant, pedestrian-friendly, active urban destination. The community is also less than a mile from Fiesta Mall, which will be redeveloped into a 1.3 million-square-foot education and healthcare campus that will include restaurants and entertainment. Major employment hubs near the property include the Banner Desert Medical Center, Santander Consumer USA, Mesa Community College, in addition to several healthcare and retail centers. The property benefits from accessibility to the broader phoenix metro, located less than 2 miles from U.S. 60 and U.S. 101, and 7 miles from I-10, all major thoroughfares in the Phoenix region.
Phoenix represents the 11th largest and the 2nd fastest growing MSA in the United States. Further, it is forecasted that Phoenix’s population will grow by 2.0% annually over the next five years, approximately 3x the national average. Phoenix is also a market leader in job growth, with Millennials representing the largest segment of the population. The Phoenix multifamily market has been a direct beneficiary of these positive demographic and economic trends, resulting in the highest rent growth in the nation and market-wide vacancy rates below the historical average.
“We are pleased to announce this value-add multifamily acquisition in the high-growth Phoenix market,” said Frank Tripoli, Managing Partner and Chief Investment Officer of Paragon Outcomes. “We are excited to partner on this acquisition with Westmount, a very experienced, institutional operating partner.”