PHOENIX-Anthem Shadow Mountain LP, a Vancouver, BC-based investment group, has disposed of its last property in the metro: the 265-unit Shadow Mountain Villas. The deal's winner is a SoCal investor that put up $15.6 million or $58,867 per unit.
According to David Fogler, senior vice president for Phoenix-based Grubb & Ellis/BRE Commercial LLC, the 3511 E. Baseline Rd. complex was listed for only a handful of days for $15.5 million or $58,490 per unit. "There was overwhelming interest in the property, as it was a well-located class B property providing a very good value-added opportunity. There just are not many of those out there," says Fogler, who with Steve Nicoluzakis, also with Grubb & Ellis/BRE Commercial, brokered the transaction for both parties.
Fogler tells GlobeSt.com that the buyer, Greater Phoenix Income Properties, isn't likely to convert the property into condominiums. "It's a possible exit strategy," he adds. "But, I think he may well just fix it up and continue to run it as a rental." The new owner has several other multifamily properties in the region.
The seller, in the meantime, will be concentrating on other assets. "He owned the property for about 10 years so it was time for him to sell," Fogler says.
Shadow Mountain Villas, built in the late 1980s, was 90% occupied when the deal closed. The unit mix is 48 one-bedroom apartments and 217 two-bedroom units. The apartments, ranging from 607 sf to 930 sf, rent for $615 to $919 per month.
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