PHOENIX-Two area players have swapped $5.7 million and 135 units in a value-add proposition for close-by positioning to the future light-rail line in North Central Phoenix. The new owner begins the reign with a 37-year-old complex and 98% occupancy.
Valley Rose Properties LLC sold the 135-unit Brookfield Terrace Apartments at 6545 N. 19th Ave. to a group of 1031 exchange buyers, Brookfield Terrace LLC, JVC Partnership LP, and the Fynmore Trust. "The seller is repositioning his portfolio," Brett Polachek, director for Cushman & Wakefield of Arizona Inc. in Phoenix, tells GlobeSt.com. "He has other multifamily holdings in the area, but he's holding onto those others for the time being." He and C&W director Todd Braun represented the seller while the buyer's interests were negotiated by Andrew Tate, an associate with Phoenix-based Southwest Apartment Advisors.
Polachek says Brookfield Terrace was on the market about four months, generating strong interest from smaller investors. "These guys, at the end of the day, got to the price level," he says, "and the seller had confidence they'd get it done within the timeframe because they were in an exchange."
Polachek says the complex provides a strong incentive for value-add opportunities although the buying group didn't commit to undertaking a major renovation. "They know the rents were below market so there is an upside opportunity there," he adds.
The 98%-occupied Brookfield Terrace Apartments, built in 1969 near Glendale Avenue, has only one-bedroom units with layouts averaging 602 sf. Monthly rents go from $525 to $555.
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