Rise48 Equity Emerges as Phoenix Multifamily Investor with Bullish Plans
By Angela Gonzales – Senior Reporter, Phoenix Business Journal
Oct 1, 2020, 1:30pm EDT
Zach Haptonstall was making more than $200,000 a year running a hospice company in Scottsdale.
By the time he was 23, he was making more money than his parents combined and already owned his own home. But in 2018, he was burned out, and sold his share of Sage Hospice.
He didn't quite know what he wanted to do, and blew through a lot of his savings thinking about it.
In early 2019, he figured he would try his hand in the multifamily industry, co-founding Rise48 Equity LLC in Scottsdale.
Over the past 18 months, Rise48 Equity has purchased 536 apartment units for more than $63 million.
His latest acquisition is the 116-unit Paseo 51 Apartments at 5215 W. Peoria Ave. in Glendale for $15.45 million, which closed on Sept. 25. Phoenix-based ABI Multifamily brokered the deal.
The seller in the deal was a limited liability company tracing back to Benedict Canyon Equities, a private equity firm in California, according to Vizzda LLC, a Tempe-based real estate data firm.
With a whetted appetite, Haptonstall says he plans to spend $250 million for apartments across the Valley in 2021.
"We have been syndicating our deals up to this point and we're now actively talking to private equity groups to start to scale up and take down much larger buildings," said Haptonstall, a Cronkite journalism graduate from Arizona State University who earned his MBA at Grand Canyon University.
The average occupancy of his portfolio is between 96% and 97%.
Rent collection stable Collecting rents during Covid hasn't been a problem, he said, with an average collection between 97% and 98%. "We've seen a 1% to 2% decrease in collections since Covid hit in March, but it's still been a very strong multifamily market," he said. Haptonstall started buying the smaller class B and C multifamily properties but said he wants to target those larger communities in the $20 million to $60 million range.
John Kobierowski — who along with Alon Shnitzer, Rue Bax, Doug Lazovick and Eddie Chang represented both the buyer and seller in the Paseo 51 transaction — said Haptonstall and his partners are good, hard-working guys.
"We met them at one of the early Neighborhood.Ventures meet-ups, where Zach and his fiancé were considering investing in Neighborhood.Ventures," Kobierowski said. "Through a few conversations, Zach felt he really wanted to buy a project himself. It's funny to look back now, but he was close to buying a 10-unit project in south Phoenix, but changed his mind and decided to step up to a 35-unit building. Since then, they have purchased over $60 million in Arizona multifamily projects."
Kobierowski said he's glad to know that Neighborhood.Ventures, a crowdfunding commercial real estate platform, got him on this path.
Linda Fritz-Salazar, vice president and associate broker for Orion Investment Real Estate in Scottsdale, said she first met Haptonstall when he was just delving into the multifamily market.
"Right off, I knew he would do well," she said. "He is very respectful, eager to listen and learn and looks for advice. He has surrounded himself with very qualified partners and business associates. He has started a monthly gathering for multifamily owners and investors."
At these meetings, he invites pertinent guest speakers to discuss various aspects of apartment investing, ownership and financing, Fritz-Salazar said.
"Zach is a great guy who is doing well and will continue to do extremely well in this market," she said.