Press Release, September 30, 2021
ARA Advances Single Family Rental Strategy in Phoenix, AZ
Los Angeles, CA (September 30, 2021) – American Realty Advisors (“ARA”), a private equity real estate investment manager with more than $10.5 billion in assets under management, has acquired Novella at Arcadia and Novella at Biltmore, two single-family rental communities in Phoenix, Arizona, on behalf of a discretionary fund.
The newly built Class A townhome communities feature high-end amenities including resort-style pool and spas, outdoor lounge seating, barbecue and grilling stations, fire pits, pet relief areas, controlled access gated entries, and a fitness center. Units have stainless steel appliances, quartz countertops, contemporary backsplashes, custom white/gray shaker wood cabinetry, and walk-in closets in expansive, multi-story floorplans with attached two-car garages.
Patrick Lataitis, Associate Director, Investments at ARA, says the acquisitions are the latest investment in the firm’s residential strategy targeting single-family rental properties in markets that have high projected net in-migration and locations with both attractive surrounding amenities and high barriers to entry.
“The Novella properties are in two of the most desirable residential areas in Phoenix with a wealth of drivable retail, dining, and entertainment options, much of which surround Biltmore’s active business district along the Camelback Corridor,” Lataitis says. “Barriers to entry are higher in this section of Phoenix than almost any other – both for renters and developers. The cost of home ownership is high and growing, and land sites of this scale are rare given the infill nature of the neighborhood. We believe in the strength of the Phoenix market and think this investment is positioned well to outperform other single family rental options throughout the metro, given both its physical and locational attributes.”
The Arcadia and Biltmore neighborhoods, as well as the Camelback Corridor have historically strong fundamentals and are among the most desirable residential locations in Phoenix. Both properties are within a short drive of the Biltmore Fashion Park and Scottsdale Fashion Square, offering dozens of retail, dining, and entertainment amenities. The nearby Camelback Corridor business district is a finance and real estate hub with more than 50,000 employees. Phoenix’s overall labor force has grown by more than 112,000 people during the pandemic.
“We continue to focus on for-rent residential as a source of assets that can provide significant outperformance,” Lataitis says. “We are confident that the positive economic and demographic factors in Phoenix make it an excellent market to expand our townhome portfolio to meet growing tenant demand. We will be seeking additional acquisition or development opportunities within single-family rental in target markets around the country.”