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Tokyo-based Nippon Steel Kowa Real Estate Co., Ltd. (“NSKRE”), advised by Metzler Real Estate, has re-entered the U.S. real estate market in a joint venture with Denver-based Continental Realty Assets, Ltd. (“CRA”), a subsidiary of Continental Realty Group. The partnership acquired Arrive Fountain Hills, a 150-unit multifamily community in the Fountain Hills submarket of Phoenix, Ariz. The property was brokered by Cushman & Wakefield.
This acquisition marks the first collaboration between CRA and NSKRE – the partnership is focused on acquiring core-plus multifamily communities in Phoenix. David Snyder, Continental Realty Group’s president said, “We are excited and grateful to complete our first acquisition with NSKRE. Our local market knowledge and history as a sponsor together with NSKRE’s global reputation as an institutional real estate firm makes for an ideal combination, and we are honored to partner with them as they re-enter the U.S. real estate market.”
As part of the business plan, the property will be re-named Luna at Fountain Hills, reflecting Fountain Hills’ designation as an International Dark Sky Community – one of only sixteen such communities in the world. CRA intends to implement a value-add program to update the unit interiors with enhancements such as solid-surface countertops, new cabinet faces and hardware, appliances, kitchen backsplash, two-tone paint, updated blinds, updated fixtures and faux wood flooring. This business plan will allow the community to offer quality housing at an affordable price relative to nearby submarkets such as Scottsdale.
The community was built in 1998 and will be managed by Mark Taylor Residential.
Phoenix continues to be one of CRA’s target markets due to its economic growth and affordability relative to other western markets, which bodes well for the market’s long-term performance outlook. CRA and NSKRE are actively looking for additional acquisition opportunities.