Kuenster Enterprises LLC purchased the 54-unit complex from Hayden Lane/Tempe LLC of Phoenix. Located at 1876 E. Hayden Lane just two miles from Arizona State University and a half-mile from the future light rail station, the complex has an excellent location, says Nathan Kuenster of Scottsdale, AZ-based DPR Realty who represented the buyer. Kuenster Enterprises secured a loan through Wells Fargo Bank to close the deal, he says.
Kuenster tells GlobeSt.com that the 22-year-old complex was just 75% occupied at the time of sale. "The high vacancy allows you to make a better buy and create some value by leasing it up to historical rates of about 90%," he says. He says the property is in good shape and does not require any capital investments for renovations.
The Hayden Lane complex is comprised 18 one-bedroom units, with 576 sf, and 36 two-bedroom apartments, each 792 sf. One-bedroom units rent for $500 per month and the larger ones go for $600 per month. However, a recent rental survey indicates that the units are under-rented by about $50 per unit, says Brett Polachek, a director with Cushman & Wakefield of Arizona Inc. who represented the seller along with Todd Braun.
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