PHOENIX—ABI Multifamily has brokered the bulkcondominium sale of Scottsdale Haciendas, a condo conversioncommunity that is located in Scottsdale. The purchase consisted of79 garden-style condominium and townhome units (out of an original180 units total on the property) and transferred HOA control to thebuyer. Scottsdale Haciendas sold for $9.25 million, whichreflects a price just over $117,000 per unit. The sale is thesecond condominium transaction brokered by ABI Multifamily in thepast week, with the two sales combining for nearly $16 million intransaction volume.

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The Phoenix-based ABI Multifamily brokerage team ofDoug Lazovick, EddieChang, John Kobierowski, AlonShnitzer and Rue Bax represented both theseller and buyer in this transaction.

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Chang tells GlobeSt.com, “Thebuyer obtained 75% loan to value financing through a Canadianlender. There are so few transactions like this. A year ago wewould not have been able to attain financing like this. But thecondo market has improved, and of course it's dependent upon thefundamentals of each particular property. There are a lot of movingparts to get financing.”

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The Vancouver-based buyer, Reef ScottsdaleLLLP, was attracted to the property's A class Scottsdalelocation and all two-bedroom unit mix. They will continue tooperate the property as a rental community with the possible exitstrategy of individual sales if the housing market continues toflourish.

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Lazovick notes, “This wasn't your typical 1980s-build condoconversion. The property is 100% two-bedroom units with garages anda portion of the units are townhomes with private backyards.

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“Acquisition opportunities for Scottsdale apartments are few andfar between. Much of the stock, like Scottsdale Haciendas, wasconverted to condominiums before the downturn. However, only abouthalf of the units at Scottsdale Haciendas were sold to individualbuyers as the conversion happened relatively late in the lastcycle. The limited supply of Scottsdale rentals coupled withbillions of dollars currently being invested in developmentprojects in the surrounding hubs of Old Town Scottsdale and ASU'sTempe campus, appealed strongly to the buyer, There has been a lotof investment in the area: SkySong, which is a unique private andpublic partnership involving ASU; the hubs of Old Town Scottsdaleand ASU's Tempe campus.” continues Lazovick.

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The seller, Texas-based Granite Reef PropertiesLLC, exits the Phoenix Valley market with the sale ofScottsdale Haciendas.

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“The South Scottsdale rental market had reallytaken off recently. The average rental rate has soared up over 13%since 2013. The property has consistently had occupancy in the midto high 90% range. These factors, combined with an improvement inthe South Scottsdale condo market and recent cap compressionpresented the ideal circumstances for the Seller to sell his onlycommercial real estate asset in Phoenix. Scottsdale has always beena good rental market, but it's really hot right now. There has beenabout $2 billion invested in South Scottsdale and North Tempe andit's really adding to the quality of the market,” Chang adds.

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Scottsdale Haciendas is a two-story condominium communitylocated at 985 N. Granite Reef Rd. in Scottsdale. The property wasbuilt in 1985 as apartments, converted to condos in 2006 and sitsin the McDowell Corridor of the South Scottsdale submarket. Locatednear the Loop 101 freeway, Old Town Scottsdale, and ASU's Tempecampus, residents enjoy easy access to the valley's premieremployment and entertainment options. Scottsdale Haciendas isentirely comprised of two-bedroom garden-style and townhome units.All units have been renovated with condo grade finishes and haveindividual HVAC systems, full size washer/dryer, garages, privatepatio/balcony and storage space. Select units have privatebackyards. Common area amenities include two swimming pools, spa,barbeque grills and ample parking.

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