Haven at Midtown currently known as Clarendon Park is a 138-unit community built in 2002. This institutional-quality garden-style asset is located at 222 West Clarendon Avenue, Phoenix, Arizona in a part of Phoenix that is referred to as Midtown. It is an exceptionally desirable and highly amenitized destination for young professionals.
The current owner purchased the asset in 2021. The sale is distressed due to the precipitous rise in interest rates, causing the asset to be sold at a loss. White Haven’s strategy is to purchase the asset at $37 million and reposition it toward an ideal tenant profile by renovating the community areas and all of the unit interiors at a cost of $5.7 million over two years, thereby increasing revenue by over $400 per unit. Once repositioned, we will either exit the transaction or secure new debt to recapitalize. Our preferred exit on this transaction is five years. However, we have underwritten a 10-year hold period to accommodate any real estate cycle.