Posada Vallarta Brings $23M

PHOENIX-A Seattle-based entity working to expand its Phoenix portfolio has acquired the 336-unit Posada Vallarta Apartments for $23.5 million, less than the listed price of $24 million.The buyer, Orion Residential LLC of Phoenix, which most recently acquired an 844-unit multifamily portfolio last spring from United Dominion Realty Trust Inc. in Colorado, plans to invest several thousand a unit to upgrade the 1984-constructed property. The property is situated on 11.6 acres at 10002 N. 7th St.According to Brad Goff of Apartment Realty Advisors' Phoenix office, the seller, Park West Properties, had developed this property and held onto it for more than 20 years. "This is a B quality product in a good B+ location," says Goff, who represented the seller in the transaction. Orion was self-represented.Goff tells GlobeSt.com that the property had been marketed for 45 days, and during that period, the seller received several offers from TIC groups and income buyers. However, due to the existing housing assistance program contract on some of the units, condo converters didn't bid on the property."The HAP allowed for 20% of the units to be available to those who were under a certain income level," Goff explains, adding that under such a contract, condo conversions aren't allowed.The property, which has an occupancy in the 90s, offers 97 one-bedroom units measuring 731 sf at a market rent of $601 per month; 212 two-bedroom units averaging between 888 sf to 1,251 sf and going for a rent of $708-$824 per month; and 27 three-bedroom units, measuring 1,453 sf and offered at a rent of $882 per month.