PHOENIX-Close to two years after acquiring the 180-unit Mandarina Apartments, S-J Management LLC has collected $20.5 million from its sale. The Seattle-based investment group, which had paid $15.47 million as construction wrapped up, benefited from an active market, a growing demand for rental properties and leasing stabilization.
Michael Sauter, S-J Management's CEO, says the listing attracted multiple offers when it came to market for $20.7 million. S-J Management pushed the complex to 98% occupancy before bringing it out.
"It wasn't out on the market for too long," says David Fogler of Grubb & Ellis/BRE Commercial LLC's Phoenix office. He and colleague Steve Nicoluzakis represented the buyers, Mayalinda Apartments LLC and Sungate Properties LLC of Woodland Hills, CA. S-J was self-represented.
Fogler tells GlobeSt.com that the buyers acquired the property as part of a 1031 exchange, winning S-J Management's nod due to past performances. "They'd been active in Phoenix before, with a good track record, and everyone felt they'd be a good fit for the property," Fogler says.
The broker says the buyers assumed the $10.9-million balance on a seven-year loan held by Nationwide Life Insurance Co. The financing has a fixed-rate interest of 5.56% and 30-year amortization.
The new owners will continue to run the apartment complex as a rental, with ConAm Management's Phoenix office in charge of management and leasing. The Mandarina has one- and two-bedroom units, measuring 643 sf to 1,100 sf. Its rents are $790 to $1,135 per month. With the mix, though, Fogler acknowledges that a condo conversion at a future date isn't out of the question.
With the Mandarina sold, Fogler says S-J Management has one more property up for sale and it's in escrow. The deal is expected to close within 10 days.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.