California Investor Pays $50+ Million for Mesa Apartment Complex
Argenta, a 396-unit apartment community at 4104 E. Broadway Rd. in Mesa, has been sold to a California investor for $50,275,000.00. The development offered opportunity for future value appreciation with extensive renovation and modernization.
Argenta was sold by Millburn Company of Salt Lake City. The buyer was 29th Street Management III, based in San Francisco. Cindy Cooke and Brad Cooke of Colliers International in Greater Phoenix handle the sale transaction.
“We were honored to be involved in the disposition of Argenta for Millburn Company. They did a great job stabilizing and positioning Argenta for the next buyer. 29th Street Capital’s strong local knowledge made them the perfect buyer to take Argenta to the next level.”
Built in 1985, Argenta is situated close to Valley freeways and more than two miles from the nearest rental apartment community. The submarket offers very little competition or new construction, making this an ideal opportunity for the investor. Rental rates in the area have increased approximately six percent and population is rapidly growing in the area.
Forty-one of the Argenta units have been renovated and modernized, leaving the buyer to take advantage of improving the remaining 355 apartments and realizing the increased revenue from that capital investment. The community consists of 24 buildings totaling 272,549 square feet of space. The one and two-bedroom units average 688 square feet each.
Upgraded units include stainless steel appliances, modern faux wood flooring, three-tone paint, refaced cabinets with new hardware, new countertops and upgraded lighting. These modernized units command an additional $150 per month, which means completion of full renovation would provide upwards of $11+ million in upside for the buyer.
The community offers a beautiful pool area and pool lounge, fitness center. Tennis and basketball courts, BBQ and picnic area, a modern leasing office with business center and a sizeable clubhouse with full kitchen, game tables, flat-screen televisions and roll-up doors for indoor/outdoor events. All of this is situated adjacent to Chelsea Park with its large grass fields and children’s playground.
Argenta is surrounded by a variety of employment opportunities. Banner Desert Medical, Honeywell, Boeing, Mesa Public Schools and Banner Gateway Medical are a few of the area’s largest employers. The apartment development is less than 15 minutes from tech giants Intel, GoDaddy, Amazon, Paypal and Microsoft.
Extensive retail and transportations are closely located. Village Square at Dana Park offers 475,000 square feet of high-end grocery, restaurant and shopping space. Superstition Springs Center, the 1.3-million-square-foot regional mall, is just 4.4 miles away and the Mesa Gateway District is just four miles from the community.