"It was actually very competitive," Mike Coover with Grubb & Ellis/BRE Commercial's multifamily group, tells GlobeSt.com of the interest in the 128-unit property at 11850 N. 19th Ave. in Phoenix. He says the complex's low occupancy was a factor in the high number of offers received on the property since it drove the per-unit cost down to $22,000 per unit, about $10,000 to $13,000 less than comparable units in the same area.
"We had at least five or six offers on the building," Coover says. "There was pretty significant upside to an investor who was willing to rehab and re-tenant the building and there were quite a few people willing to do that."
In the end, it was not just a $2.8-million offer that won Euromex LLC of Goodyear the title to the three-story, garden-style units, but also the investment group's ability to quickly close on the property and its agreement to the contract terms offered by Springfield, MA-based seller Lenox Mortgage II LP. Coover says the new owner plans to renovate the units' interiors at an estimated cost of $300,000 to $500,000 and reposition the property to compete with the area's average rental rates of about $500 per unit. Coover, along with former Grubb & Ellis/BRE Commercial broker Jerry Tenge, represented both parties in the transaction.
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