PHOENIX-A 252-unit, class B apartment complex in north central Phoenix has been sold in an exchange between local investors for $11.95 million.
Ten-year owners Leparulo Property Trust and CAS Arizona Apartment LLC handed off Paradise Village Apartments at 1943-50 W. Aster Dr. and 1945 W. Sweetwater Ave. to Right Place Properties, a well-known local repositioning pro. Todd Braun, senior director with Cushman & Wakefield of Arizona, Inc.'s Phoenix office, tells GlobeSt.com that five offers came in for the property in a 30-day marketing with a $13-million ask. He says the partners' reason for the sale was tied to the market's strength.
Braun says Right Place Properties stood above the rest because of its reputation. "We felt there was some surety in closing there," says Braun, who teamed with C&W brokers Jim Crews, Brett Polachek and Paul Gross to steer the sale. Kevin Peck of Red Door Group Inc. in Phoenix represented the buyer.
Paradise Village's occupancy at time of closing was 75%. Braun explains deferred maintenance has about 50 units off line. "The remaining units that were in ready condition were well-occupied," he says. The complex was built in phases between 1972 and 1984.
Braun says the buyer plans not only to renovate the unit, but other portions of the complex in a value-add strategy. The renovation tab is still being fine-tuned.
Paradise Village Apartments, situated nine acres near Interstate 17, offers a mix of studio, one-, two- and three-unit apartments, ranging from 325 sf to 1,080 sf. Rents are $450 to $775 per month.
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