"Sares-Regis is committed to Phoenix and value-added opportunities there," stresses Peter Katz, vice president of investments for Marcus & Millichap Real Estate Investment Brokerage Co.'s Phoenix office. "These two deals were partnerships that dissolved. They're looking for more investments here." The hand-off is a 93%-leased, class B complex at 2140 W. Thunderbird Rd.
Katz and Marcus & Millichap associate Alon Shnitzer handled the disposition, which includes the $11-million pass of the 181-unit Willow Tree in East Phoenix. The brokers also represented Northridge's buyer, Atherton-Newport Investments, also from Irvine.A Sares-Regis-Chase Bank joint venture owned the Northridge Apartments. "The seller achieved its strategy and price," Katz explains. "The market was hot. The opportunity was there. They'd rehabbed the exteriors so it was time to go."
Katz tells GlobeSt.com that the Sares-Regis partnership paid $15.3 million five years ago for the asset. The 25-year-old complex's latest run on the market, which drew 20 offers, lasted about two weeks. He says Atherton-Newport's appeal as a buyer was tied to the ability to close the deal and its interest in making additional upgrades to the property. The renovation plan and cost isn't available.
Northridge Apartments has units ranging from 460 sf to 960 sf. The studios and one- and two-bedroom apartments rent for $518 to $738 per month.
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