Tides Equities Pays $44M for Phoenix Asset
November 1, 2021
Emma Capital has sold the 185-unit Zazu Apartment Homes in Phoenix for $43.8 million. The buyer, Tides Equities, rebranded the property as Tides on Osborn. Chris Roach, vice president with Colliers, brokered the deal on behalf of the seller.
Tides Equities funded the transaction with acquisition financing provided by Berkshire Residential Investments, according to Maricopa County records. The new owner plans to renovate the property by investing $4.5 million in a capital improvement plan.
The property last traded in 2018, when Emma Capital paid $22.3 million for the property formerly known as ZaZu Pannee Park Regent, The Park on Osborn as well as Evergreen Terrace, Yardi Matrix data shows. New York Community Bank provided a $15.6 million acquisition financing package back then.
Tides on Osborn sits on 7 acres at 1502 E. Osborn Road. The community comprises studios, one- and two-bedroom apartments with floorplans averaging 734 square feet across 14 two-story buildings, according to Yardi Matrix. The community features amenities such as swimming pools, a clubhouse, a fitness center and a mini-golf area.
Completed in 1981, the garden-style community is located less than 4 miles northwest of downtown Phoenix and less than 2 miles from midtown. Tides on Osborn is adjacent to North 16th Street, which besides offering easy access toward downtown, is overflowing with shopping, dining and entertainment options. Phoenix Children’s Hospital is 1 mile southeast of the property, while Phoenix Country Club is 1 mile west.
INVESTING IN PHOENIX
The property’s high occupancy rate and the opportunity to modernize its finishes and appearance contributed to the investment’s appeal, said Roach.
The Phoenix multifamily market is a top national performer, with relocations in the area and sustained job growth underpinning its strong streak.
Tides Equities focuses on Class B assets with value-add potential across the Western U.S. The current purchase marks the company’s 79th acquisition in this focus area during the last half a decade, also being its 48th buy in Greater Phoenix.