Haven at Midtown

Overview

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.
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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.