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PHOENIX-A Honolulu investor has pulled out of the local market with the $6.6-million, off-market sale of his sole asset, the 120-unit Park Place Apartments.

The 89%-leased, 1972-constructed complex, acquired by Zacher Homes of Phoenix, is slated for the demolition ball later this year. The five-acre tract will be scraped to make way for new townhomes, which will be priced at upwards of $400,000 per unit. Local sources believe Zacher could invest up to $1 million to demolish the 802 E. Missouri Ave. complex.

Seller Michael Richardson acquired the complex for $4.37 million in December 2003. "He sold it because he was from Hawaii and it was difficult to maintain from that distance. Also, this was a master-metered building that was very expensive to maintain," says Bobby Bull with Transwestern Commercial Services in Phoenix, who teamed with Jim Achen Jr. and Bill Zurek to represent the seller.

Bull says the buyer came knocking on Richardson's door--and he's actively looking for more acquisitions in the area for further development. "They knew I'd sold this property earlier and knew the site would be perfect for town homes because it's close to the Biltmore [on Camelback Road]," he tells GlobeSt.com. Zacher was represented by local broker Michael A. Lieb of Michael A. Lieb Ltd.

Park Place Apartments has a mix of one- and two-bedroom apartments, measuring 672 sf to 955 sf. The rents are $609 to $696 per month.

Instant Insights /

EXCLUSIVE: 120 Units Coming Down for Townhouse Development

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