The property, known as the Olive Street Apartments, stands at 3420 Olive St. It contains 50 units that encompass a total of 79,794 sf. Jamie Dick of the capital markets division of Burnham Real Estate Services arranged the loan, which was funded by Archon Financial.
The deal comes as investor demand for multifamily product is at a 17-year high. According to a recent report by Colliers International, demand has not been this strong since the period prior to the Tax Reform Act of 1986. Purchase prices rose more than 20% from year-end 2001 to year-end 2002, while cap rates ranged from 6.5% to 7.5%. The significant increase in demand is "due to a diverse local economy, high cost of home ownership, a depressed stock market, low vacancy and low mortgage rates," according to Colliers' researchers.
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