The buyers, Terry Brown and Raj Bhandari of Real Property Services LLC and the Bhandari Group LLC plan to tear down Oak Court, developed in 1957 on a 0.8-acre tract at 546 West Glenrosa Ave., and replace it with a nine-story structure. The developers also own an abutting tract to help fuel the redevelopment play. A groundbreaking date has not yet been set.
"The seller had acquired the property during September 2004, with plans to rehab it, fix it up, then sell it," comments Cliff David an associate with Marcus & Millichap Real Estate Investment Brokerage Co's Phoenix office, who represented seller Diane Knight of Newport Beach, CA. In the middle of the rehabilitation, the buyers approached Knight through their agent, Jacob Cotan of DPR Realty LLC of Phoenix.
"Given there were only three occupied units out of the 33 at the time, she was willing to listen," David tells GlobeSt.com, adding the buyers were interested in the land rather than the structure. He says that interest, though, spurred Knight to list the property for $1.7 million, getting three offers during a brief marketing period. "The buyers had the most competitive bid, had the best plan for the property and the highest probability of closing," he adds. "Plus, their experience and track records in Arizona were high too."
David says the Oak Court is Knight's last commercial holding in the metro--she sold another multifamily property last year. The broker says she's planning to complete a 1031 exchange in the Southwest, but not necessarily in Phoenix. Knight paid $910,000 two years ago for Oak Court, all one-bedroom, 500-sf units that rented for $525 per month. "This was not a bad return for 15 months," David adds.
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