PHOENIX-S-J Management LLC has closed a deal on the 629-unit Bacara and Montelena at the Canyons for $80.8 million. The transaction marks S-J's second closing within six weeks.
Though condo fever is high in the area, S-J Management plans to run the complex at 19920-40 N. 23rd Ave. as a rental while continuing to seek out additional opportunities. "Mike Sauter is always looking for additional acquisitions, but nothing's on the block right now," says David Fogler, vice president of Grubb & Ellis/BRE Commercial LLC's Phoenix office, who brokered the transaction for the buyer and the seller, Gray Development Group of Phoenix. In early May, the Seattle-based investment group acquired the 272-unit San Ventura Apartments at 3600 W. Ray Rd. in Chandler for $33 million.
Fogler tells GlobeSt.com that the seller had developed the Canyons, got it stabilized and put it on the market, getting more than a dozen offers during a 30- to 45-day marketing period. "The seller currently owns a number of properties and is developing others in the area," he adds. "It's normal for them to develop a property, lease it up and then put it on the market.
Situated on more than 15 acres, the Canyons overall is 95% occupied with a rent range of $659 to $1,225 per month. The 223-unit Bacara contains one-, two- and three-bedroom apartments, measuring 684 sf to 1,060 sf, and its 396-unit neighbor, the Montelena, has a mix from 475-sf studios to 1,095-sf four-bedroom floor plans.
Steve Posluszni with Capstone Funding LLC in Phoenix arranged financing from Wachovia Bank. Steven Nicoluzakis, senior vice president with Grubb & Ellis/BRE Commercial-Phoenix assisted in the transaction.
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