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MESA, AZ-In an off-market transaction, a local limited liability company has relinquished its one and only multifamily holding in the area, the 472-unit Bay Club at Mesa Cove Court, to a northwest-based investment group for $20.5 million.

The complex, located at 2121 W. Main St., is situated near the downtown and Fiesta Mall. A source with Marcus & Millichap Real Estate Investment Brokerage Co.'s Phoenix office tells GlobeSt.com that the buyer, Randall E. Norgart, a managing member of BNB Partners LLC of Portland, OR, plans to invest another $5 million to spruce up the 1985-constructed complex to prime it for repositioning and boosting the 85% occupancy.

The source says it's uncertain if a condo conversion will be done at this time or even who will be hired to manage it. Based on market conditions, industry sources speculate that the upside could lie in keeping it as a rental property due to the depleted inventory from this year's rash of condo conversions.

The seller, Ted Williams of Bay Club LLC in Phoenix, was represented by Marcus & Millichap's Phoenix team of Ron Monat, Bernie Bajoras and Jerry Walker. Ric Holway, also with the local Marcus & Millichap office, negotiated for the buyer. Williams bought the complex five years ago.

Bay Club features 186 one-bedroom units, each 730 sf; and 286 two-bedroom apartments in 893-sf layouts. Rents range from $560 to $650 per month. The gated complex is outfitted with a new fitness center, covered parking, club house, indoor racquetball courts, swimming pool, hot tub and spa.

Instant Insights /

Oregon Investment Group Snaps Up 472 Units in $21M Off-Market Deal

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