FLAGSTAFF, AZ-After many years of owning and managing the 208-unit Village at University Heights, a local developer has sold it for $13 million in an off-market transaction.
Located at 3200 Litzler Dr., the 17-year-old complex is slated for condominium conversion. The costs and price points aren't yet available.
Doug Fielding, vice president in Phoenix for Marcus & Millichap Real Estate Investment Brokerage Co., represented the buyer, Leo Crowley of Flagstaff and the seller, Ken Wallace of Scottsdale in the transaction. "The buyers are long-time clients of mine and I've done several transactions on their behalf in the past," Fielding says. He tells GlobeSt.com that he had been encouraging the seller to put the property on the market for awhile, but the developer wasn't ready to do so until recently.
Fielding says the complex, which is 98% occupied, has a strong student tenant base. It contains 46 one-bedroom units, each 600 sf, and 162 two-bedroom units, ranging from 800 sf to 900 sf. Its average is market rate, $695 to $795 per month. Amenities include private patio and private storage as well as a location near the Urban Trail.
The seller, Fielding says, doesn't have any more properties in the area. In addition, "I don't think the buyers will be looking for any more properties at this point," he notes.
According to a local report, Flagstaff has experienced a general increase of 4.5% occupancy growth in rental property as of the third quarter. This places Flagstaff first in overall average occupancy in the area, at 96.6%, and first in overall average rent of $772. As condo conversions continue to increase, the report predicts both occupancy and average rents will continues to increase as well.
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