TEMPE, AZ-A company formed by Fairfield Residential LLC in San Diego has acquired the 306-unit Mission Springs Apartments in the Southeast Valley for $28.8 million.
The real estate firm, buying as FF Realty LLC, plans to upgrade and hold the class B complex at 1311 W. Baseline Rd., just east of Interstate 10. The renovation cost is estimated at more than $3 million, with upgrades to include new appliances, flooring and exterior paint and landscaping. "They saw this as a value-add opportunity," Tyler Anderson with CB Richard Ellis in Phoenix tells GlobeSt.com, "and they're going to go in with interior upgrades to the property."
Anderson says the 19-year-old complex was the only commercial asset for Mission Springs LP of Scottsdale. The partnership included the apartment management company, Bernard/Allison Management Services Inc. of Phoenix. "They managed it and owned it for years," Anderson says. "This was an old partnership from many years ago and they finally decided to sell."
Anderson says the complex attracted 12 offers during a 30-day marketing in an un-priced offering. Fairfield beat out the others because of its upgrade plans and track record, says Anderson, who teamed with CBRE colleague Sean Cunningham to steer the sale.
Mission Springs Apartments is 98% occupied in a pocket of retail that includes a new Home Depot-anchored center. Mission Springs has one-bedroom apartments ranging from 506 sf to 635 sf and two-bedroom units measuring 804 sf to 884 sf. Rents are $713 to $774 for one-bedroom units and $926 to $965 for two-bedroom apartments.
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