Sells Class-A Multi-Family Asset for $23 Million
Scottsdale, AZ | February 12, 2021
CaliberCos Inc., a fully integrated real estate company, announced today that they have sold Treehouse Apartments, a 167-unit multifamily asset located in Tucson, Arizona for $23 million. The Company purchased the asset for $4.8 million in 2014, which at the time was approximately 70% below replacement cost. After an extensive $7.9-million renovation, which was completed in July 2017, the Company held the asset at a 10% cap rate on stabilized cost and subsequently sold it at an exit cap rate of 5%.
As part of the renovation, Caliber transformed a Class-C property that was generating average rental rates of approximately $592 per month, into Class-A apartment homes that are now generating average rental rates of $975 per month. The asset features new cabinets and counter tops, in-unit washers and dryers, as well as community amenities such as a pool with fire features and BBQ, and a clubhouse complete with flat screen TV’s and a full kitchen.
“This transaction is demonstrative of the value-add investment strategy,” stated Lisa Pudewell, Vice President of Real Estate Assets at Caliber. “As Arizona and other Southwest markets continue to surge with demand, we are proactively allocating resources to these vibrant markets through strategic asset sales, renovations and value-add acquisitions. We believe the sale of Treehouse Apartments fits perfectly into our business strategy and adds to our track record of delivering above average returns for our investors.” Ms. Pudewell concluded, “through distressed real estate investments and our recent Reg A+ offering, which will close on February 26, 2021, we are able to holistically manage every step of our investment process as we strive to create long-term value for our customers, company and community.”
The asset is 3 miles from the University of Arizona and Banner Health Hospital and 5 miles from Downtown Tucson, which is near the Catalina Foothills recreation area and conveniently located to a variety of retail, dining and entertainment amenities. Tucson is the second most populated city in Arizona behind Phoenix and has benefited from the recent emigration of people from other more expensive U.S. cities seeking a lower cost of living and high quality of life, which is offered by Tucson’s temperate year-round weather, access to major transportation hubs and employment opportunities within the region as a student, a work from home employee or essential healthcare worker.
Commenting on the sale, Susan Kauffman, MEB’s Director of Strategic Relationships, stated, “We are happy to have played a vital role in closing this sale, which generated an attractive profit for Caliber and provided class-A housing to the Tucson market. We owe much of the success to our Treehouse Apartments team and their Asset Director, Denise Trentacosta, who went above and beyond to produce an increase in NOI of 22% year over year since 2018.”
Arthur Hill & Company Realty represented the Buyer and Justin Lanné with NAI Horizon represented the Seller. The Buyer is a private real estate investment group based in Chicago, IL. The seller, CaliberCos Inc. is a public, non-traded real estate company based in Phoenix, AZ. MEB Management Services is a residential and commercial property management company that provided property management services for Treehouse Apartments.
Reg A+ Online Investment Round Will Close On February 26, 2021
With a 12-year track record of growth and boasting a 26% Compounded Annual Growth Rate (CAGR) since 2017, Caliber has demonstrated its ability to create value for investors. Caliber is one of the fastest growing, award-winning real estate investment companies in the Southwest with an asset base that has grown by over 186% over the last four years through an exceptional real estate strategy that targets middle market investments within the Southwest region of the United States. The Company believes these markets offer the best supply and demand fundamentals that are essential to long-term value.
In addition to Caliber’s recent real estate sale, it is in the final stages of an imminent opportunity to invest like an institution in an unconventional online public offering, which will close on February 26, 2021. Through a Reg A+ offering, Caliber is providing an opportunity for anyone to access a sophisticated, private real estate investment that has been traditionally reserved for accredited or institutional investors. Now accredited and non-accredited investors have a unique opportunity to join other Caliber owners by investing before the end of the round.
Caliber is offering securities through the use of an Offering Statement that has been qualified by the Securities and Exchange Commission under Tier II of Regulation A. A copy of the Final Offering Circular that forms a part of the Offering Statement may be obtained from: Caliber: https://www.seedinvest.com/calibercos
Mary Jensen | Public Relations