LOS ANGELES – July 27, 2015 – CBRE Strategic Partners U.S. Value 7, a fund sponsored by CBRE Global Investors, has acquired Broadstone Element, a 629-unit, garden-style apartment community in North Phoenix that is currently 93 percent occupied.
Located at the intersection of I-17 and Loop 101, Broadstone Element has excellent visibility and drive-by traffic and is convenient to key transportation and employment corridors as well as attractive retail and recreational amenities. It features contemporary floor plans and a comprehensive amenity package that includes four resort-style swimming pools, an updated clubhouse, fitness facility, internet café and a game room.
The team plans to improve operations through aggressive management and initiate a comprehensive marketing and residential service upgrade including implementation of CBRE Global Investors’ proprietary Inspired Lifestyle program, which will significantly enhance the resident experience to improve retention and leasing performance. Additionally the team plans a capital program to renovate unit interiors to finish levels that are more consistent with those of new construction and to improve curb appeal by repainting the property and enhancing the landscaping surrounding the asset. The proposed interior renovation package includes hard surface countertops, faux stainless steel appliances, upgraded lighting/plumbing fixtures, two-inch faux wood blinds, technology upgrades and new flooring.
“Phoenix has been a target market for this fund,” said Steve Zaleski, Senior Managing Director, CBRE Global Investors Multi-Housing Group. “We expect it to be one of the top three performing apartment markets nationally in terms of rent growth, and with accessibility to major employment nodes, the Deer Valley Submarket in which this asset is located is projected to outperform the MSA in terms of both vacancy and rent growth.”
“Broadstone’s extensive amenity package and well-designed floor plans make it an excellent candidate for a cost-effective value-add program,” said Mike Gallagher, Director, CBRE Global Investors Multi-Housing Group. “Dedicated supervision and the implementation of our Inspired Lifestyle customer service program will be instrumental to the repositioning strategy.”
About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $87.1 billion in assets under management* as of March 31, 2015. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment firm for the benefit of its investors. CBRE Group, Inc. has more than 52,000 employees in more than 370 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of investments in real estate; equity in funds and joint ventures; securities portfolios; operating companies and real estate-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.