Boston Investor Makes Arizona Debut with Plans for Major Acquisitions

Boston Investor Makes Arizona Debut with Plans for Major Acquisitions

Boston Investor Makes Arizona Debut with Plans for Major Acquisitions

Article originally posted on Phoenix Business Journal on February 8, 2021
 
 

Boston-based Taurus Investment Holdings LLC has made its Arizona debut with the purchase of two apartment communities in the Valley.

The private global real estate investment firm just paid $56.4 million for the 240-unit Indigo Springs apartments in Mesa, on the heels of the $24.95 million acquisition of the 200-unit Avenel on 16th Apartments in August.

Max Dorsch, who manages the Western U.S. acquisitions for Taurus, said he's only just begun.

"We're focused on growth markets that are seeing tremendous employment and population growth, low cost of living and low tax burdens and markets with dynamic research institutions like Arizona State University," Dorsch said. "Phoenix has all that in spades."

Dorsch said he remembers watching an Arizona Diamondbacks baseball game at Chase Field about 10 years ago.

"I was underwhelmed by that area," he said.

Dorsch said he started actively looking to buy properties in metro Phoenix in 2019.

"It took us almost a year and a half to do that," he said. "That's a testament it takes incredible perseverance to find your way into the market. But we're very happy we held on."

The coronavirus pandemic has only accelerated population growth in metro Phoenix as Californians are leaving their high taxes and cost of living expenses for more affordable housing, he said.

"Phoenix is a great market for investment," he said, adding that Taurus will be looking to invest in industrial and office properties as well.

Steve Gebing and Cliff David, both executive managing directors for Institutional Property Advisors, a division of Marcus & Millichap (NYSE: MMI), represented the seller, TA Realty, and procured the buyer on this deal.

"The southeast Valley is one of the densest employment regions in the state, and Indigo Springs is among just 10 assets built in the south Mesa submarket over the last 20 years," Gebing said.

Berkadia secured a $38.27 million loan on behalf of Taurus for this acquisition.

Linda Fritz-Salazar, vice president and associate broker for Orion Investment Real Estate in Scottsdale, said metro Phoenix has become what is considered an inbound city for relocation for both investors and people living in high-cost areas.

"The Phoenix area has been predicted to be among the top in affordable real estate," Fritz-Salazar said. "People are moving to the Valley because they can still maintain a high quality of life with a lower cost of living. In addition, we have an available workforce with an increase in well-paying jobs and a stable climate, all of which forecast a growing economy and stronger housing growth."

 

With about $3 billion in assets under management across four continents, Taurus has two subsidiaries that focus on using innovative energy efficient technologies to decarbonize residential and commercial buildings, said Peter Merrigan, CEO of Taurus.

Technologies such as geothermal heating and cooling, solar photovoltaics and other sustainable technologies help the subsidiaries transform new and existing real estate assets, he said.