Gaining a Foothold in a New Market

After years of analyzing the best markets for future growth, SSRE purchased its first asset outside of CA, Villas on Olive in Peoria, AZ, for $36.7M in December 2019. SSRE chose AZ, specifically Phoenix, as its first new market for growth outside of CA because of its compelling economic and demographic trends, which have not disappointed. The Villas also presented a unique opportunity to acquire a luxury resort-style community with BTR units at an excellent value. While the entire AZ market has taken off, this specific property has outperformed all others by appealing to renters who are willing to pay a significant premium to enjoy the comforts and advantages of a new home without all the maintenance and upkeep.  Since the acquisition, rents are up over 25%, and we recently received an unsolicited offer to buy this property at $70M, which would have generated an absurd 300% ROI! Since hitting this homerun with its first foray into the Phoenix market, SSRE has since grown its asset base in the market to 9 buildings and counting.