Exchange Buyer Outbids 10 Others for Phoenix CBD Asset

Buying under the entity of Paseo Verde Apts. LLC, Tom and Lori Sutton of San Diego picked up the Paseo Verde apartment complex with some quick maneuvering, outbidding about 10 other prospective buyers with a $5.6-million offer, David Fogler, with Grubb & Ellis/BRE Commercial, tells GlobeSt.com. "They had been looking for something in Phoenix for awhile and this represented a good opportunity for them to come in and acquire a well-located property at a price well-below what they could get in California," Fogler says.

Competition for the class B property, located at 4444 N. 7th Ave. near Campbell Street, was particularly intense, Fogler says, given that the mid-size complex and the offering price was in high market demand. Irving, TX-based seller, the Archon Group, a Goldman Sachs company, selected the Suttons from a field of 10 prospective buyers because they were an experienced 1031 Exchange buyer, Fogler explains. "In addition to being competitive on pricing, they did their homework, had their financing lined up and were ready to go," he says of the deal, which gave the new owners possession of the property at $30,435 per unit, well below the $6.3-million asking price. The 92%-leased complex features a pool, laundry facilities, a clubhouse and covered parking.

Fogler and Steve Nicoluzakis, also with Grubb & Ellis/BRE Commercial, represented the seller. Karl Abert with Marcus & Millichap's local office handled the transaction for the buyer.