(To read more on the multifamily market, click here.)

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MESA, AZ-Expanding its footprint in the area, a PacificNorthwest buyer pays $21.9 million to acquire 441 units in twoseparate deals. A Tucson-based seller parted with its class B313-unit Windscape Apartments in Mesa and Las Palmas Apartments, a128-unit complex in Tucson.

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The acquisition, from seller QSR Inc. of Tucson, brings investorResidential Equity Partners' Arizona portfolio to 1,613 multifamilyunits. As it has with other assets, the Portland, OR-basedResidential Equity plans renovations to both complexes. Renovationcosts for both properties will total close to $3 million.

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"We're doing renovations on a large scope at Windscape,including washer-dryer upgrades and install and renovations on theoffice and addition of a 24-hour fitness facility," says DavidButler, Residential Equity's president. He adds that Las Palmaswill require minor modifications, but not to the scope ofWindscape.

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Butler tells GlobeSt.com that the company continues seeking outlikely properties in Phoenix and Tucson. He acknowledges that,while he likes the idea of value-add components on acquisitions,such properties are becoming difficult to find in both cities.Residential Equity's goal is to acquire 1,000 units in Arizona bythe end of 2007.

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Windscape Apartments was built in 1986 and is 93% occupied. Theproperty at 550 E. Mckellips Rd. was acquired for $15.8 million andthe 313 units consist of a mix of efficiencies, one- andtwo-bedroom units. Rents range between $450 and $640 per month.

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Further south, the 128-unit Las Palmas, acquired for $5.9million, is at 6901 E. Broadway. The 1973-built complex hastwo-bedroom units with the average rent at $630 per month.

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Art Wadlund with Hendricks & Partners' Tucson officenegotiated the transactions. Greg Richardson with the Irvine, CAoffice of Johnson Capital assisted with financing for Windscape,while Las Palmas was financed through the seller.

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