If you need assistance, please call 480-365-8346

LA investor pays $40M for Phoenix apartments, has 3 more properties in escrow

Tuesday, May 7, 2019   /   by Juan Grimaldo

LA investor pays $40M for Phoenix apartments, has 3 more properties in escrow

The property is along the Metro light rail line

Screen Shot 2019-05-07 at 10.55.49 AM.png
(Image: Provided by Tides Equities)
Los Angeles-based Tides Equities LLC has scooped up about 1,000 apartment units around Phoenix this year. Pictured is a property at 5401 E. Thomas Road, Phoenix. The investor also has three other Valley properties in escrow.

Sean Kia is on a roll.

The co-founder and principal of Los Angeles-based Tides Equities LLC has purchased nearly 1,000 apartment units in metro Phoenix so far this year, and has another three properties in escrow.

His most recent purchase was May 4, when he plopped down $39.75 million for a 488-unit apartment complex at 1905 W. Las Palmaritas Drive in Phoenix.

Plans call for investing $8 million to renovate the property, including a rebranding of the exterior so it will look similar to other Tides properties and adding resort-style amenities.

The name will be changed to Tides on the Rail because it is near Metro light rail at 19th and Northern avenues, Kia said.

Kia said he will build private patios for about 200 of the units.

"Right now, there is a big grass area by the back doors of all these units," Kia said. "We figured why just have open grass — let's give them enclosures to make it feel like their own private patio. We will be building wood patios with gates so they have their own backyards."

Screen Shot 2019-05-07 at 10.56.53 AM.png
(Image: Tides Equities LLC)
Sean Kia, co-founder and principal of Los Angeles-based Tides Equities LLC.

Rents currently are around $700 a unit, but after the renovation, rents will be bumped up to $875 for units without their own private patios and about $900 for units with private patios, Kia said.

Each unit will get about $10,000 in interior renovations to include quartz countertops, stainless steel appliances, subway tile backsplash, undermount sinks, upgraded track lights, new floating bathroom vanities, resurfaced shower tubs and new vinyl plank flooring, and stainless steel appliances.

Screen Shot 2019-05-07 at 10.57.38 AM.png
An $8 million renovation to the recently purchased apartments in north Phoenix will include stainless steel appliances and quartz countertops. Pictured is a unit within the 244-unit Tides at Lakeside, 999 E. Baseline Road, Tempe, the company bought last September.

The exterior will be renovated to include the Tides signature beach wood horizontal siding that is on all Tides properties. 

The property is 95% occupied, which is near the 95.2% occupancy rate of apartment communities with 10 or more units, according to ABI Multifamily's first-quarter report issued May 6. The 95.2% average occupancy rate is a 0.1% year over year increase. 

Average rents in metro Phoenix are $1,131, up $88 from first-quarter 2018, according to the ABI report. 

The company owns about 4,000 units in metro Phoenix, with three more properties totaling 600 units in escrow. Kia expects those three properties to close in July. One of them is in north Phoenix, another is in Arcadia and another is in downtown Tempe. 

By   – Senior Reporter, Phoenix Business Journal

Keller Williams Realty Elite- The Grimaldo Group
Juan Grimaldo
2403 N Pebble Creek Pkwy #101
Goodyear, AZ 85395

© 2021 Arizona Regional Multiple Listing Service, All rights reserved. The data relating to real estate for sale on this website comes in part from the Arizona Regional Multiple Listing Service. Real estate listings held by brokerage firms other than Juan Grimaldo - Keller Williams Realty Professional Partners - The Grimaldo Group (WINBACK) are marked with the Arizona Regional Multiple Listing Service logo and detailed information about them includes the name of the listing brokers. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor Arizona Regional Multiple Listing Service shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. January 23, 2021
This site powered by CINC: www.cincpro.com