PHOENIX-After nearly four months of negotiating the deal, S-J Management LLC has taken control of the 480-unit MonteViejo Apartments in the Desert Ridge area of North Phoenix. The deal closed at $50.5 million or $105,208 per unit, about $500,000 more than the ask.
The Seattle-based investment group has been under contract since June to buy the class A complex at 2220 E. Beardsley Rd. from its Phoenix seller, Gray Development Group.
According to David Fogler with locally based Grubb & Ellis/BRE Commercial LLC's multifamily investment group, the listing was on the market 45 days before the winning contract was placed. "The buyer has purchased a property from this developer before. He really likes the product they build," says Fogler, who with Grubb & Ellis/BRE's Steve Nicoluzakis represented both parties in the transaction. "The location is one of the best areas in Phoenix right now for growth. This transaction for the buyer was a combination of finding the product he liked and a seller that he'd had a good experience with before."
The 95%-leased MonteViejo, developed in the late 1990s, sits in a neighborhood with the 1.3-million-sf Desert Ridge Marketplace and 950-room Desert Ridge Marriott Resort & Spa. "The property is in turnkey condition so no renovations are likely," Fogler tells GlobeSt.com. And, he stresses, the buyer isn't planning to convert the rental units into condos.
The complex is a mix of 102 studios, 162 one-bedroom units, 180 two-bedroom apartments and 18 three-bedroom floor plans. Units range from 504 sf to 1,151 sf; rents go from $672 to $1,289 per month.
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