John Donahue of JDD Properties of Ladera Ranch, CA paid $1.45 million to John Braggins of Continental Lifestyles Inc. of San Rafael, CA for the Continental at 1026 E. Spence Ave. The complex, listed at $1.55 million, received several offers and eventually traded at a 7.6% cap rate, Brian Smuckler, a director with Marcus & Millichap Real Estate Investment Brokerage Co., tells GlobeSt.com.
Smuckler, who single-handedly packaged the sale, adds the complex traded at below replacement cost, especially considering its location. Smuckler says the location is the most attractive part of the deal. The Continental is situated right in the midst of all of the retail and restaurants in the heart of Tempe and just one block away from the proposed light rail station.
The one-building complex, totaling 23,100 sf, is situated on roughly one acre. It has 35 one- and three two-bedroom units. One-bedroom apartments, each 600 sf, bring in $535 per month in rent while the larger units of 700 sf are getting $650 monthly. Smuckler says the Continental has a strong occupancy history which, at sale time, was 90%.
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