Early Spring

Mark-Taylor prepares to turn over a new leaf at Arboretum at South Mountain as it welcomes a New York investor to Phoenix

August 28, 2007-Fall may be fast approaching, but it's time for spring cleaning for Mark-Taylor Residential. On Wednesday, Aug. 29, the Scottsdale-based apartment firm will take over management of Renaissance at South Mountain, a 312-unit Phoenix rental community as soon as the new owner, Abacus Capital Group of New York, takes possession of the property. "We'll wait for the close," says Michael Wilson, asset manager at Mark-Taylor. "Then we'll go straight to work."

Wilson's 30-person team will include leasing associates, maintenance staff, and landscapers, all of whom will descend up on the property to "make it Mark-Taylor" in immediately noticeable ways. "We'll add flowers to give it a pop. We'll rearrange the leasing office to make it more functional," Wilson says. "We'll hang Mark-Taylor banners and signage."

They'll also change the name to Arboretum at South Mountain, which will see more updates and upgrades in the months to come: Abacus Capital Group plans to spend more than $1 million on property improvements to better target the needs of today's renter.

"We plan to add an outdoor Internet café, make the business center 24 hours, create a sand volleyball court, and double the size of the exercise center. We also plan to install outdoor kitchens with stainless steel grills and add misters to the pool area," says Kyle Ellis, senior vice president with Abacus. "We want to create a community and resort atmosphere that does not currently exist today."

Wilson agrees. "This is a decent property that has a world of potential," the asset manager says. "It just needs a little TLC."

The numbers would agree. The occupancy rate and the average monthly rents at Arboretum stand at 85 percent and $908, respectively. That's low for this particular Phoenix submarket, where average rents are $995 and the occupancy rate is 94.8 percent.

Improving those numbers should be no problem for Mark-Taylor, which has extensive experience in repositioning assets quickly and successfully.

With both financial and community goals for this latest Abacus acquisition, Ellis says Mark-Taylor, with its emphasis on customer service, resident activities, and lifestyle extras, was the only choice to manage Arboretum. "We like their level of experience in this submarket. They know Phoenix and residents' mindset better than anyone else," Ellis says. "I know we will benefit from their knowledge and commitment to excellence in this market."

Fast Facts

Property: Arboretum at South Mountain (formerly Renaissance at South Mountain)
Location: 15251 S. 50th St., Phoenix
Apartments: 312
Mix: One-, two-, and three-bedrooms available in five floor plans, ranging from 690 square feet to 1,300 square feet
Average monthly rent: $908
Current occupancy: 85%
Built: 1999
Planned updates: Outdoor Internet café, expanded fitness center, outdoor kitchens for resident use, landscaping, new lighting and hardware in units, new landscaping
Estimated costs: More than $1 million to update units and property maintenance Planned takeover by Mark-Taylor: Wednesday, Aug. 29, 2007
Notable: Represents Abacus Capital Group's first Phoenix acquisition

Sources

Kim Atkinson, director of marketing and public relations, Mark-Taylor Residential; 480-991-9111 or katkinson@mark-taylor.com
Michael Wilson, asset manager, Mark-Taylor Residential, 480-991-9111 or michael.wilson@mark-taylor.com
Kyle Ellis, senior vice president, Abacus Capital Group: 212-203-4963 or kellis@abacuscapitalgroup.com

Companies

Mark-Taylor Residential is an award-winning company that excels in apartment development, construction, and management. Mark-Taylor has developed more than 13,000 apartments in the Southwest and currently manages more than 7,200 apartments in the Phoenix area, providing residents with beautifully appointed apartment homes and a resort-style lifestyle. For more information, visit www.mark-taylor.com.

Abacus Capital Group is a New York-based company that capitalizes on multifamily market inefficiencies, utilizes real estate capital markets and executes well-conceived investment strategies to deliver institutional investment advisory services to investors. For more information, visit www.abacuscapital.com.