MESA, AZ-A private investor from Seattle takes $1.5 million in profit through the $10.6-million sale of the 154-unit Montego Villas to a Wheeling, IL-based condominium converter.
The seller acquired 27-year-old complex at 949 S. Longmore St. for $8 million as a long-term hold in July 2005, but rethought the plan after receiving an unsolicited offer almost as soon as the deal closed. "The selling broker came back to him, telling him there was someone interested out there. This had him thinking about alternative uses for the property," Bob Farrell, an adviser with Sperry Van Ness in Phoenix, tells GlobeSt.com, "and he thought it could be opened to the broader market." Sperry Van Ness brokers Julie Vaughn and Kevin Hanford assisted with the sale.
Farrell says six offers were placed during the 60-day marketing period. Interforum Holdings got the win because "they were reputable developers who had done conversions in other areas of the country," Farrell explains.
Situated on 6.23 acres, the 22-building complex is 85% occupied. The one- and two-bedroom units bring in rents of $490 to $681 per month. It's not certain when Interforum, represented by Jan Long of Re/Max Commercial Investment of Phoenix, will begin the conversion process.
"This isn't the seller's typical MO," Farrell says. "He fully intended to run this as an income property, but then the opportunity to sell found him and he put another $1.5 million in his pocket." He adds that the seller, who has no further assets in the region, isn't planning any more local investments right now.
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