Apartments Fetch $200,000 Per Unit

Steven Brombal of Hendricks & Partners, who represented both the buyer and the seller, tells GlobeSt.com that the buyer "has already made money on the deal because the property was in escrow for 120 days and values have gone up in that time." The buyer and the seller were both private investors. The buyer, Brombal says, acquired the property at 2660 Elden Ave. as a long-term hold. A backup buyer was ready to pay the same price, he says.

Brombal says the seller had owned the property since 1994, in a deal he brokered then. "The sellers doubled money and are pursuing exchange opportunities," Brombal says. "They feel that with the financing terms available now, they can double the number of units they own."

The buyer paid a 50% down payment and obtained a 6.1% cap rate at rents that are right about even with the market, a situation that is "unusual in today's market," Brombal tells GlobeSt.com.

"In most of the deals where we are selling a property that someone has owned for quite a while, the rents are usually below market, sometimes 10% or 20% below," he says. The building has a new roof and a new concrete driveway, and has been well maintained, Brombal notes.

The two-story, wood frame and stucco property was built in 1977, and its apartments average 1,245 sf. Five of the seven are townhouse-style units. The seven include a three-bedroom, three-bath unit that is rented for $1,800; four units of two bedrooms and 1.5 baths that are rent for $1,450 each; and two two-bedroom, one bath units, one of which is rented at $1,200 and the other at $1,250.