TGM Associates re-enters Phoenix Multifamily Market with strategic acquisition in Chandler

TGM Associates has announced its return to the Phoenix multifamily market with the acquisition of TGM Ocotillo Bay, a 296-unit apartment community in Chandler, Arizona. This marks a renewed commitment by the firm to one of the fastest-growing real estate markets in the southwestern United States. The lakefront property, which sits within the master-planned Ocotillo community, reflects a calculated move by TGM to re-establish a foothold in a region where it has previously owned and managed over 2,300 apartment units.

Why Has TGM Returned to the Phoenix Multifamily Market in 2025?

The purchase of TGM Ocotillo Bay follows a broader trend among institutional investors seeking value-add opportunities in high-growth suburban markets, especially in locations with a strong employment base and high quality of life. The Phoenix metropolitan area, and Chandler in particular, offer a blend of economic dynamism and residential appeal, which continues to attract both renters and investors alike.

What Makes TGM Ocotillo Bay a Strategic Investment Property?

TGM Ocotillo Bay is a garden-style residential complex built in 1997 and partially renovated in 2015. Spanning approximately 19 acres with low-density planning and Spanish-inspired architecture, the property comprises one-, two-, and three-bedroom apartments. The community’s distinguishing feature is its lakefront setting, which enhances the lifestyle offering and rental appeal.

Positioned less than a mile from the Price Road Corridor, home to major high-tech employers, the property sits in one of Arizona’s most economically vibrant zones. Intel Corporation’s largest global manufacturing campus is located in the vicinity, along with a growing number of other technology and semiconductor firms. This employment concentration has supported consistent rental demand and underpins the property’s long-term investment value.

TGM Associates plans to enhance the asset through a comprehensive renovation program. The interiors will undergo a full upgrade, including new kitchen cabinetry, modern countertops, appliances, lighting, hardware, and flooring. Bathrooms will be refinished to reflect the same design standards. Common areas will also see transformation, with the clubhouse being overhauled to provide modern amenities. Existing lifestyle features such as two swimming pools, an outdoor courtyard with grills and bocce ball, and a yoga-enabled fitness centre will be retained and enhanced.

How Does Chandler Fit into TGM’s Broader Market Strategy?

Chandler has emerged as one of the most attractive suburban submarkets in the Phoenix area, offering a compelling mix of job accessibility, school quality, and urban amenities. The city has been ranked 37th in Fortune’s 2024 list of “50 Best Places to Live for Families”—the only city from Arizona to make the cut. Chandler is also home to Arizona’s top-rated school district, making it a popular choice among working families and young professionals.

In terms of fiscal health, Chandler is one of the most financially stable cities in the United States. Between 2023 and mid-2024, the city earned AAA bond ratings from Moody’s, Fitch, and S&P Global. These ratings not only reflect its sound budgetary management but also signal a low-risk operating environment for property developers and investors.

For TGM, re-entering this stable yet growth-oriented submarket aligns with a value-driven investment thesis that seeks to capitalise on demographic shifts and the decentralisation of workforces post-pandemic. As more professionals migrate toward suburban markets offering better housing affordability and quality of life, multifamily properties in these areas are expected to remain in high demand.

What Does the Acquisition Indicate About Market Sentiment and Multifamily Investing?

The acquisition was brokered by CBRE, a leading global commercial real estate services firm, with a team comprising Asher Gunter, Matt Pesch, Sean Cunningham, and Austin Groen. The deal reflects continued interest in well-positioned multifamily assets from both institutional and private equity players.

Since the Federal Reserve began its monetary tightening cycle in 2022, real estate investors have had to carefully assess interest rate impacts on leveraged acquisitions. However, properties like TGM Ocotillo Bay, located in low-vacancy submarkets with favourable demographic trends, have retained institutional appeal.

TGM’s decision to acquire and reposition this asset indicates a bullish long-term outlook on the Phoenix rental market. It also demonstrates the firm’s confidence in executing a renovation-led value-creation strategy despite tighter capital markets.

How Does This Align With TGM’s National Investment Model?

Since its inception in 1991, TGM Associates has pursued a vertically integrated investment model. With in-house capabilities spanning acquisitions, construction, leasing, and property management, the firm operates through several affiliated entities, including TGM Communities. As of April 2025, TGM has invested in 142 multifamily properties across 28 states, establishing itself as a major player in U.S. residential real estate.

The firm’s strategy typically targets suburban communities with high rent growth potential, often in metro areas that benefit from job migration, lifestyle enhancements, and infrastructure development. TGM Ocotillo Bay fits squarely within this thesis, with the firm aiming to enhance the asset through capital improvements while benefiting from Chandler’s strong fundamentals.

The reentry into Phoenix signifies not only a return to a familiar market but also a continuation of the firm’s nationwide focus on asset quality, location advantages, and operational efficiency. TGM’s stated intent is to add long-term value for both residents and investors through targeted upgrades and efficient management.