MESA, AZ-A limited liability company from Camarillo, CA has sold its final asset in the area in a $17-million, off-market transaction to a Phoenix investor. The new owner plans to pump another $15,000 per unit into readying the 194-unit Emerald Springs Apartments for condo sales.
Julie Vaughn, vice president in Scottsdale for Sperry Van Ness, says the seller, Farnum Properties LLC, wanted to take advantage of the current strong market for multifamily property sales. The just-sold holding is a class B complex, situated on 7.6 acres at 1820 W. Lindner Ave.
"The buyer is a developer and they've been looking at the market for some time," Vaughn says. "This is its first larger deal in the Phoenix area."
Vaughn and Sperry Van Ness senior adviser Edward Chang had begun preliminary sale discussions with the seller, who had already disposed of two other complexes in the area. But, Sperry Van Ness broker Kevin Hanford, who also offices in Scottsdale, came up with a buyer before Emerald Springs went to the market. "It went under contract within a couple of weeks," Vaughn says.
Vaughn tells GlobeSt.com that the new owner, Unit 194 LLC, currently is working on condo mapping and rehabbing the complex. Sales are expected to start within six months. "The buyer is always trying to find additional projects," she adds. "They're looking for more class B properties because they still offer a reasonably good return on investment."
Vaughn explains that, with condominium conversion activities at their peak in the area, many class A properties have been snapped up for that purpose. "People are starting to focus on B properties," she adds. "Bs are going crazy right now."
The 23-building Emerald Springs is 98% occupied. Its two-bedroom units rent for $695 per month.
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