On September 8, 2016, Security Properties purchased Arches at Hidden Creek, a 432-unit multifamily property located in Chandler, AZ for $55,000,000.  SP now own five assets in the Phoenix marketplace.

Arches at Hidden Creek is located within the dynamic Chandler submarket.  Chandler's median annual household income is approximately $71,000, 32% higher than Maricopa County, which covers most of the Phoenix MSA.  Chandler's greatest strength is its employment base.  Arches sits within five miles of 70,000 jobs in industries that include high-tech manufacturing, aerospace, bioscience, and advanced business services.  Because of the city's central location and proximity to three freeways, it can pull from more than 1.7 million people within a 30-minute commute. The Price Road Corridor is the area's largest and most established employment center. Silicon Desert, as it is known, is located just one mile southwest of Arches.

The property is also within close proximity to the ASU Research Park (15,000 jobs), Arizona Avenue Business Parks (20,000 jobs), Downtown Chandler (5,000 jobs) and the Chandler Airpark (5,000 jobs). Less than 3 miles directly to the west of Arches lies the Chandler Fashion Center, an upscale, super-regional mall that encompasses over 180 stores and roughly 1.2M SF. The mall is widely considered the premier shopping destination in metropolitan Phoenix's Southeast Valley and is anchored by Nordstrom, Dillard's, Macy's and Sears.

Arches at Hidden Creek is a garden-style apartment community that was constructed in 1986.

The business plan is a moderate value-add. To date, 133 units have been upgraded throughout the property. Interior upgrades include: faux wood flooring, baseboards, black appliances, faux granite countertops, new cabinet fronts with hardware and painted cabinet boxes to match, light fixtures, two-tone paint, ceiling fans and updated hardware and plumbing fixtures. SP plans to continue this rehab strategy by renovating the remaining 299 original units to a similar interior scope.

According to Davis Vaughn, Director at Security Properties, the acquisition was made because, "Arches at Hidden Creek offers everything we look for in an investment.  The Chandler job story is one of the best in all of Phoenix plus the location gives residents easy access to retail and enrollment in the top-ratedChandler school district.  With a basis well below replacement cost, we expect to produce outstanding risk-adjusted returns to our investors with this purchase."

The property will be managed by Security Properties-affiliate Madrona Ridge Residential.

Security Properties purchased Avanti Apartments, a 414-unit, Class A multifamily property located in Las Vegas, NV, for $57,500,000. It is SP's fourth purchase in the Las Vegas market.  

The Class A asset was built in 2010 and the units feature nine-foot ceilings with decorative crown molding, faux wood-style flooring, GE steel appliance package, large walk-in closets, garden-style tubs and stackable washer/dryers.  Additionally, Avanti offers a complete amenity package including a resort-style pool with spa and cabanas, state-of-the-art fitness center, fireside lounges and picnic areas with barbecues.  Security Properties will execute a light renovation of the unit interiors.

The property is ideally located along the Bruce Woodbury Beltway in northwest Las Vegas. The area currently has the lowest vacancy of the six Vegas submarkets at 4.63% per CBRE.  The low vacancy, combined with the very limited recent and planned supply, results in strong rent growth forecasts in the area for the foreseeable future.  The area is also home to a number of the market's premier public and charter schools. Within just a four-mile radius of the property are three public elementary schools, two public middle schools, one public high school as well as two private charter schools.

The property is conveniently located along Interstate 215, providing residents quick access to both major retail and employment corridors. The Clark County Department of Public Works is currently underway with a construction project that will add two additional exchange areas as well as three overpass structures. The project is focused along a 2-mile strip of I-215 directly adjacent to Avanti and will result in increased accessibility to both the property as well as area retail and employment corridors.

Davis Vaughn, Investment Manager at Security Properties says Security Properties acquired this asset because, "Avanti was a great opportunity for us to buy a core-plus asset in a dynamic location well below replacement cost.  The recent and future expansion of the Providence and Skye Canyon master planned communities should strengthen the fundamentals of this area long term which will create value for our investors over the hold."

The property will be managed by Security Properties-affiliate Madrona Ridge Residential.