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Carlsbad, CA-based Red Rock Investment Management (RRIM), a real estate private equity firm, acquired a two-asset portfolio in Flagstaff, AZ, last week that includes 419 multifamily units. The total purchase price was nearly $58.8M and included Clear Creek Village, a 113-unit mixed-use asset, valued at about $14.9M, or $132k/unit, and Ridge at Clear Creek (pictured) apartments, a 306-unit complex, valued at $43.8M or $143k/unit.
RRIM bought the portfolio in an off-market deal, engaging directly with the seller, says RRIM founder and managing principal Stu Bone, noting these assets increased RRIM’s apartment holdings in the Flagstaff market to 519 units. Stu says RRIM’s capital stack deployed private equity investment from individuals close to the firm. The company also owns the 100-unit Table Rock Apartments.
Both assets are adjacent to the 740-acre Northern Arizona University (NAU) campus, which had a 2015 enrollment of 21,107 students. “NAU offers a top-ranked engineering program at a fraction of the cost of competing universities,” Stu says. “We believe in the long-term growth prospects for this city and this university, and we appreciate the opportunity to provide clean, safe, well-managed housing for NAU students and Flagstaff residents.” The University of Arizona Board of Regents estimates enrollment at the NAU campus to reach 25,000 by 2020.
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