PGIM Real Estate has acquired the Ten01 On the Lake apartment in Tempe, Arizona for $115m (€93.1m), according to sources familiar with the deal.

The 523-unit property was sold by Southern California-based investment firm The Picerne Group.

PGIM declined to comment.

The US fund manager has bought this property for its open-ended fund known as PRISA III, the sources said.

The transaction with the apartment complex was done through the US West Coast office of PGIM.

This is the first deal for this regional office since it was allowed to invest in Arizona.

Another strategy it would be pursuing in this market would be the future development of industrial assets.

PGIM currently plans to place an additional $7m into the property for renovation.

According to sources familiar PGIM’s plans for the property, the real estate manager could hold onto the asset for four years. Alliance Residential will be managing the property.

The existing residents in the property are a mixture of graduate students of Arizona State University.

The current occupancy of this property is in the low 90% range, in line with the Tempe apartment market occupancy level.