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SCOTTSDALE, AZ-A condo converter from Oak Park, IL has acquired its third multifamily property in the area, spending $79.27 million for the 350-unit La Privada Apartments.

The class A complex, built in 1985 at 10255 E. Via Linda, will be converted into condominiums by the buyer, Robert Sheridan & Partners at an estimated conversion cost of $14.7 million, says David Sotolov, vice president and senior loan originator in Phoenix for Brea, CA-based Fremont Investment & Loan. United Dominion Realty Trust of Highlands Ranch, CO was the seller of the 95%-leased asset.

Sheridan, represented by Marcus & Millichap Real Estate Investment Brokerage Co.'s Phoenix office, already has converted the 273-unit Las Brisas Apartments in north central Phoenix and 299-unit Shores at Andersen Springs in nearby Chandler. "One of them is completely sold out and the other is close to being there," Sotolov says.

Fremont provided $74.55 million in a bridge loan with a 2.5-year term for the acquisition and conversion. Scott McPherson and Eric Inabinet with Capital Advisory Group of Phoenix arranged the financing.

Sotolov tells GlobeSt.com that Sheridan plans to begin exterior renovations immediately, and within the next six months, the units will come to market with $200,000 to $400,000 sale tags. Sheridan spent $226,500 per unit to acquire the complex and will put more than $18,750 into upgrading interiors.

The 39 two-story buildings, positioned on 36.44 acres, has 72 one-bedroom units, with 857 sf that rent for $829 per month; 243 two-bedroom units ranging from 1,213 sf to 1,360 sf for $919 to $1,145; and 35 three-bedroom units, 1,600 sf for $1,379.

Sotolov says the buyer doesn't have additional properties under contract at this time. But, he adds, it's a strong likelihood that the converter is continuing to look in the region, given the success of his previous conversions.

Instant Insights /

Condo Converter Ponies Up $79M for Third Complex in Phoenix Metro

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