PHOENIX-A little more than a year after acquiring a 160-unit complex for $13.8 million, a Washington, DC investor has sold the five-year-old Azure Creek at Tatum Ranch for $26.6 million. The new owner, Chicago-based Equity Corporate Housing Holding Co. Inc., plans to convert the units into condominiums.
"When the seller bought this, it wasn't a condo deal, but when they sold it, it was," says David Fogler, senior vice president with Grubb & Ellis/BRE Commercial LLC's Phoenix office. The complex at 29862 N. Tatum Blvd. had been on the market six weeks, attracting 15 offers for seller Azure Creek Properties LLC. Fogler says Equity ended up with the deal because of its reputation as one of the nation's largest owner-operators of apartment complexes.
A prior relationship with Fogler and Grubb & Ellis/BRE vice president Steven Nicoluzakis also helped tipped the deal toward the Midwestern multifamily investment group. "We'd sold things for them in the past," Fogler says. "They'd been pretty active in the Phoenix market. We knew they knew the condo and rental market in Phoenix as well as anyone."
Fogler tells GlobeSt.com that the almost large profit the seller earned isn't surprising, given the location in the master-planned community of Tatum Ranch, where single-family home prices average $500,000. "Those are the statistics that attract converters," Fogler says.
Situated on eight acres, the 95%-occupied Azure Creek has one- and two-bedroom units, measuring 707 sf to 1,093 sf. Monthly rents are $760 to$1,089. A timeline and budget for the conversion were not available.
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