PRESCOTT, AZ-A San Diego buyer has succeeded in owning the 150-unit Legacy at Prescott Lakes. After tracking the multifamily complex since it was built in 2000, the buyer acquires the building for $13.3 million, or $88,333 per unit.

"She had followed the property since it was built, was familiar with it and already owns a property in Flagstaff," comments David Fogler, senior vice president of Grubb & Ellis|BRE Commercial, LLC's Multi-Housing Investment Group in Phoenix. "When this came on the market, she was interested and pursued it heavily, especially when an exchange came up on her end and she had the funds to place," he says.

Fogler, with Steven Nicoluzakis represented the developer/seller, Prescott Lakes Apartments LP, a nationwide multifamily property developer in San Francisco. Bassham Trust, the buyer, was self-represented.

The property, located at 1998 Prescott Lakes Parkway had a $14-million price tag and was listed for several months. According to Fogler, the deal generated strong activity. However, "it had a HUD loan on it, which can be a limiting factor for the number of buyers," he tells GlobeSt.com. "Plus this is located in Prescott, which is a smaller market, and that can also limit the buyer pool."

The buyer paid off the 7% interest, 40-year amortization, $10-million HUD loan and is securing a new acquisition loan from Wachovia Bank, with Phoenix-based Johnson Capital arranging financing, Fogler says. "The assumption process had taken so long that by the time the property was ready to close, it made more sense to pay that loan off," Fogler explains.

Legacy at Prescott Lakes, with 95% occupancy, offers a mix of one-, two-, and three-bedroom units, measuring 743 sf to 1,128 sf. Units are offered at a month rent of $790 to $1,100.

Fogler notes the buyer won't have to make much in the way of improvements. "This is a class A building in very good condition," he says. "Part of what attracted her to the property was the quality of it."