Division Street Partners of Riverside, CA paid "pretty close" to the asking price of Brookridge Associates Partners, made up of investors from Texas, Florida and California who were looking to "cash in and move on down the road" with their gain from an 18-year hold, says Tom Warren with Phoenix-based Hendricks & Partners' Dallas office. He tells GlobeSt.com that the buyer used 1031 exchange funds from a multifamily property sale in Riverside and assumed a $1.8-million loan, with three years left on the term and a 6.9% fixed-rate interest, held by Wells Fargo.
"It went pretty smooth," Warren says. "It was a low-leveraged deal." Start to finish, the transaction took 75 days to get across the closing table due to the assumption process, he adds. Warren teamed with Hendricks & Partners' Tom Burns and Jay Gunn to close the deal.
Warren says the units will need about $1,000 each in upgrades. The 93%-leased complex has units averaging 578 sf. Rent runs $530 per month, on average.
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