National Asset Services (NAS), which assumed management of college student housing property Gateway at Tempe five years ago, has sold the asset to an undisclosed purchaser from among multiple bidders, it announced recently from Tempe, Arizona.
Known for its track record of turning around properties burdened by economic conditions, NAS revitalized the Gateway property with major amenities while overcoming recession-related economic obstacles, via aggressive leasing and strategic management and by increasing occupancy to its current level of over 95 percent. The resulting $1 million cash reserve and a 6 percent co-owner cash distribution made the property attractive to prospective buyers.
Gateway at Tempe, located approximately one mile east of Arizona State University on East University Drive in Tempe, is one of the largest student housing properties in the Arizona State University area. With approximately 19 acres, the garden-style community features 19 two and three-story wood frame residential buildings and a clubhouse and leasing building.
Built in 1998, the property features a swimming pool, basketball court, two lighted tennis courts, a fire pavilion and a lighted sand volleyball court. It was purchased by an unknown buyer, the company said, from a group of 33 tenant-in-common (TIC) co-owners who were advised by NAS during the transaction.
“Gateway at Tempe is a unique asset in a very competitive student housing marketplace," Karen Kennedy, NAS president and founder, said. "Our clients and management team worked together to improve the Property's living experience for students, while generating positive cash flow. We are delighted to have delivered a favorable outcome for our clients as well as providing a property with positive cash flow with economic upside to new ownership."