S&P Investments Inc. purchased the Villa Riviera at 3040 N. 2nd St. from San Francisco-based Krausz Cos., bringing exchange money from a multifamily sale in West Hollywood. "Because of the high prices, the group decided to focus on Phoenix," Cliff Dodge with Marcus & Millichap's local office tells GlobeSt.com "They'll get a better return over here."
Dodge, who negotiated for the buyer, says Villa Riviera, built in the 1950s, received 10 offers within a week of coming to market. "It was extremely competitive," he says. In fact, the asset garnered $25,000 more than the list price and traded at a 5.8% cap rate.
"The level of interest shows the strength of the market for this type of asset," says Brian Smuckler, the seller's Marcus & Millichap broker. "It's one of the nicer properties under 50 units in town."
Villa Riviera has one studio apartment, 27 one-bedroom apartments and 10 two-bedroom apartments. The average unit is 557 sf and an average rent of $728 per unit.
"This is a unique asset with a great location in the Central Avenue office corridor," Dodge says. He adds there is a tremendous amount of nearby employment plus the city's future light rail will be within walking distance of the complex.
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