10860 N 85th Ave, Peoria, AZ 85345
- 100-unit recently renovated asset with strong in-place cash-flow located within the fast-growing Peoria submarket
- Opportunity to increase current market rents as they are ±$60-$153 below submarket competitors
- 91% of community interiors were renovated featuring shaker-style cabinets with brush nickel hardware, vinyl flooring, new carpeting, two tone paint, resurfaced Greystone countertops, kitchen backsplashes, resurfaced showers and tubs, and new baseboards
- Renovated units are achieving market rent premiums averaging ±$178 for the one-beds and ±$278 for the two-beds
- Opportunity to renovate the remaining 9% of units once tenants move out
- Favorable unit mix with 80% two-bedrooms and 20% one-bedrooms
- 39% of units feature enclosed patios with premiums ranging $50 for the one-beds and $100 for the two-beds
- Washer and dryer installation opportunity in the two-bedroom units which would yield w/d premiums of $50-$75/unit, a potential 31%+ return on investment
- Current ownership recently invested over $2.15 million on capital improvements including roofs, exterior paint, pool area improvements, landscaping, signage, HVAC, water heater, plumbing, and common area improvements
- All roofs at the community received a full elastomeric acrylic coating in late 2021 and two of the ten buildings had full roof replacements - all roof work comes with a 10-year contractor and manufacturer warranty
- Ample tenant amenities featuring a swimming pool, corn hole gaming area, outdoor barbecue and ramada, playground, dog park, and spacious enclosed patios on downstairs units
- Attractive agency financing options structured at 75% LTV
- 7%+ Cash on Cash return going in and 9% Cash on Cash return Year-1
Property Description
Obsidian on 85th is a 100-unit garden-style, walk-up community located in Peoria, AZ. Peoria continues to experience unprecedented job growth and major economic developments in the area including Stadium @ P83, Peoria Sports Complex, and Westgate Entertainment District, which are fueling robust demand for multifamily housing in the submarket. The city has grown by 8.7% during the five year period between 2016-2021 while the number of businesses increased by 12.8%. The opportunity is situated in downtown Peoria, within a 5-mile radius of over 100,000 jobs.
The asset is positioned for substancial revenue growth as the current market rents at the property are approximately ±$160-$300 below submarket competitors.
Ownership recently renovated 95% of interiors and achieved premiums of approximately $155 for the one-beds and $170 for the two-beds. The remaining 5% of units are scheduled for renovation once tenants move out. Renovated units feature new shaker style cabinet doors with brush nickel pull handles, vinyl flooring, new carpeting in bedrooms, baseboards, two tone paint, resurfaced greystone countertops, kitchen backsplashes, and resurfaced showers and tubs.
Current ownership recently invested $2.15+ million on capital improvements including exterior paint, pool and spa repairs, landscaping, fencing, leasing office and interior upgrades, new signage, and roof repairs.
The turn-key opportunity has strong in-place cash flow with attractive agency financing options available.