PHOENIX-Following a $1-million in rehab, the six-year owner of the 191-unit Shadow Mountain has harvested $10.5 million from the sale of its last asset in the metro. The closing rang up $600,000 more than the Seattle couple was asking for the property.
"We attracted condo converters and conventional buyers because the property was clean and because of the unit mix," Baron Bruno, an associate with Phoenix-based Hendricks & Partners, tells GlobeSt.com. "This was a turnkey, very clean deal and that's what I think attracted a lot of buyers." The competition for the 12440 N. 19th Ave. development was won by Nicholas Karris of Water Tower Realty Management Co. of Chicago because he was a known quantity, according to Bruno. "He came in with the better offer too," he says.
Built in 1980, the 8.31-acre Shadow Mountain was 98% leased at sale time. It has 96 one-bedroom units and 95 two-bedroom apartments, averaging 854 sf. The monthly rent ranges from $495 to $552.
"He'll likely hang onto the asset for awhile," Bruno says. "There is very little, if any, deferred maintenance and no capital improvements."
Bruno says the Seattle couple bought Shadow Mountain in 1998 for $7.39 million. He says they spent the following years on finding quality tenants and making capital improvements. The Hendricks & Partners team, representing the seller of record Western Homes I LP, also included Mark Forrester and Bob Bruno.
In mid-2005, Western Homes also sold the 144-unit Cedar Meadows in Peoria. "They were looking to retire and get out of the Phoenix market because they have two businesses in Seattle they want to focus on," Bruno says.
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