WhiteHaven has acquired Clarendon Park, a 138-unit community in Phoenix, for $37 million. This transaction marks WhiteHaven’s ninth multifamily acquisition in the metro. The property last traded in 2021, for roughly $37.3 million, according to Yardi Matrix data.
WhiteHaven intends to rebrand the community as Haven at Midtown, with Greystar overseeing leasing and management. CBRE represented the seller and also arranged financing.
Located at 222 W. Clarendon Ave., the 2002-built, garden-style community provides a mix of studio, one- and two-bedroom units averaging 703 square feet. The two-bedroom units represent more than 60 percent of the total of units. The property comprises nine three-story buildings and included amenities such as a fitness center, clubhouse and a dog park, as well as a pool with grilling area. Additionally, Clarendon Park offers 200 parking spaces, of which 114 garages, 24 covered spots and 56 open parking spaces.
The Midtown community is close to some of the metro’s largest health-care providers, including St. Joseph’s Hospital and Medical Center, as well as additional hospitals and other large employers. The metro’s strong economy strengthened by population and employment growth results in strong rental demand in the area, with more than 6,600 units of positive net absorption through the first half of the year, said Matt Pesch, CBRE Vice Chairman, in prepared remarks.
CBRE’s Pesch, alongside Senior Associate Austin Groen and Executive Vice Presidents Jeff Seaman and Bryson Fricke, worked for the seller, a private individual, while Antony Valenzuela, vice president with the firm’s debt and structure finance team, arranged financing.
Value-add play in a decelerating market
WhiteHaven plans to invest almost $6 million in renovations over the next two years alongside the rebranding, according to the company.
Displaying a slowdown in investment and with rents contracting 2.8 percent year-over-year through April, Phoenix is in for a course correction. However, overall long-term fundamentals are relatively sound, with unemployment at a tight 2.9 percent as of March and demographic growth on a good path.
