SCOTTSDALE, AZ-After an abbreviated due diligence period andspeedy closing, PASSCO Companies LLC has acquired Desert ParksVista Apartments for $32.6 million, which translates into a sub-6%cap rate.

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The Irvine, CA-based investor bought the 202-unit luxurycommunity from PB Bell Cos. in an all-cash transaction. Theproperty is located within the exclusive DC Ranch master-plannedcommunity.

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“By anyone’s measure, this is the finest apartment property inthe state of Arizona,” says Gary Goodman of PASSCO. “This propertyis so unique in that it’s the only multifamily property to be builtin DC Ranch, which is one of the highest income areas inScottsdale. If you want to be a renter in DC Ranch you have oneoption and that’s our property.”

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Located at 9393 E. Palo Brea Dr., Desert Parks Vista was thewinner of the 2006 Developer’s Award from the Arizona MultihousingAssociation for “Best Community Design Built in Arizona 2004-2005.”It features Spanish mission-style architecture with shutteraccents, gated access and one- and two-car garages. Other amenitiesinclude a resort-style swimming pool with spa, a conference room,state-of-the-art fitness center and a leasing center and clubhousewith plasma TV and fireplace.

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Built in 2005, Desert Parks Vista features a mix of one, two andthree-bedroom units ranging from 848 to 1,498 square feet. Monthlyrents range from $1,289 to $3,000. Individual units featurenine-foot and vaulted ceilings, recessed and track lighting,granite countertops, maple wood cabinetry and Roman shades.

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Desert Parks Vista was 95% occupied at the time of sale. “Thehigh occupancy suggests that there is room to raise rents,” Goodmansays. “And we think the property could be converted to condos donethe road.”

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Goodman says PASSCO has no immediate plans to convert theproperty. The firm plans to be a long-term holder.

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Tyler Anderson and Sean Cunningham of CBRE’s Phoenix officerepresented PB Bell Cos. in the transaction. Goodman representedPASSCO.

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