CALCAP Advisors Announces Eleventh Acquisition Completed

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Firm surpasses 1,000 units purchased during distressed cycle.

CALCAP Advisors achieved a milestone recently, announcing that its multi-family portfolio now exceeds 1,000 units in Arizona. Desert Sky Village, a 274-unit REO property purchased from First Financial Bank, brought the total units acquired by CALCAP during this most recent distressed cycle to 1,050 units purchased in the last 30 months.

“Desert Sky Village presented an opportunity to acquire an underperforming, bank-owned asset significantly below replacement cost”, stated Edward Aloe, Managing Principal of CALCAP Advisors. “Phoenix is experiencing a strong recovery in the overall real estate market, with multi-family properties leading the way. Desert Sky was one of the last lender-owned opportunities in this economic cycle, which made it especially attractive as an investment. CALCAP plans to substantially renovate the interiors, completely re-design the property entrance, improve the club house and common areas, and install drought tolerant landscaping,” Aloe stated.

CALCAP Advisors owns 10 multi-family properties across the Phoenix and Tucson metropolitan areas totaling 1,007 units. The weighted average basis in the 10 properties is $24,496 per unit and $35.83 per square foot, which is approximately 65% below replacement cost. CALCAP has successfully purchased distressed assets from banks, life insurance companies, Fannie Mae, special servicers, individual note holders, private equity groups, and the U.S. Bankruptcy Court.

“We’re aggressively seeking value-add opportunities for apartments in Phoenix, Tucson, Las Vegas and other Western U.S. markets to grow our multi-family portfolio to 2,500 units over the next 18-24 months”, said Pat Wakeman, Principal of CALCAP Advisors. “Brokers or property owners can submit properties meeting our investment criteria and expect responsive feedback from us. Properties should have at least 100 units, be in a good location, and offer an opportunity to increase cash flow and property value by making smart capital expenditures and improving day to day management through our in-house management company, CALCAP Properties, Inc.”

CALCAP has taken two assets “full cycle” during the last year achieving a project level IRR of 30.86% and 23.14% respectively. Average Annual ROI was 28.89%.

For more details or to request information, please contact Ed Aloe at 626.229.9057.

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Elizabeth Romero
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