Phoenix-Area Apt. Complex Valued at $115 Million Hits the Block Article originally posted on CoStar on December 12, 2017 Tax Abatement and Upside Potential Should Attract Value-Added Investors to Ten01 in Tempe A 10-year-old Phoenix-area apartment complex hitting the sales block comes with an attractive tax break and some potential upside for the next owner. Ten01 on the Lake in Tempe, AZ is a 523-unit, garden-style complex that is approximately 95% occupied. Local pros think bids will come in at about $220,000 per unit, or about $115 million. That price would translate into a capitalization rate of about 5.5%. Bruce Gray developed the property in 2007 and owned it for several years before selling to The Picerne Group of Newport Beach, CA. The company has hired CBRE to shop the asset and are touting the ability of a new owner to bump rents after making some modest improvements to the apartment interiors and common areas. The in-place rents are lower than nearby newer apartment properties. The property is also part of a local economic development program that offered Gray a tax abatement for 35 years. A new owner would not have to pay local real estate taxes until 2043. There is also an existing mortgage on the property that could be assumed by a new owner. Details of the debt are unknown. The property, located at 1001 E. Playa del Norte Dr., is on the north bank of the Tempe Town Lake and close to many of the major employers in the city. Arizona State University, with its 77,000 students, is just across the lake, as are State Farm, Microsoft, ZipRecruiter and LifeLock. The abundance of tech firms in Tempe has led some locals to dub the area the Silicon Desert. Despite being pitched as a value-added play, the property is new enough to feature some high-end amenities. There are three pools with spas and cabanas, a rooftop lounge, and a five-level clubhouse with a kitchen coffee bar and internet café.