PHOENIX-In its entry into the metro multifamily market, a Detroit-based limited liability company has purchased the Hawthorne, a 276-unit complex, for $39.3 million. The buyer plans to convert the property into condominiums.
"They already have a lot of reservations for the units and haven't advertised the property yet," says Chuck LaBenz, an associate partner with Phoenix-based Hendricks & Partners. LaBenz and Hendricks & Partners' Mark Forrester represented the buyer of record, Hawthorne on 3rd LLC, and the seller, Concord Equities LLC of Phoenix, in the hand-off of the 3848 N. 3rd Ave. property.
LaBenz tells GlobeSt.com that the seller received 10 to 12 offers during a 45-day run, with a no-minimum ask, on the market. "The buyers came in at the highest price. They were highest on the deposit and offered the shorter time frame," he adds. "Basically, they wanted it more than any one else."
The 10-year-old complex, situated on 9.62 acres, is about 90% leased. The Hawthorne contains 112 one-bedroom units, ranging from 752 sf to 802 sf for monthly rents of $730 to $760; 140 two-bedroom apartments, with 998 sf to 1,042 sf for $825 to $870; and 24 three-bedroom designs, each 1,198 sf for $1,080. The cost to convert the units was not available by publication time.
LaBenz says buyer and seller both have other deals in escrow, but not with each other. The buyer should acquire his second multifamily property within the next several weeks while Concord, which has properties in Phoenix, Tucson and Flagstaff, is preparing to sell yet another multifamily asset.
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