PHOENIX-After a somewhat complicated marketing and escrow period, the one-year-old, 72-unit Juniper Meadows has been acquired by a Southern California investment group or for $7.6 million. The holding was 98% leased at sale time.
RK Multi-Family Income Fund XVI LLC of Long Beach acquired the property at 16804 N. 42nd Ave. from a merchant builder, Treger Financial Co. from nearby Scottsdale.
Though the sale and active marketing were fairly straightforward, Mark Forrester with locally based Hendricks & Partners tells GlobeSt.com that a boundary dispute stretched the marketing period to nearly four months. Once the dispute was resolved, he says the transaction process went well for seller of record Juniper Meadows LLC.
"Aside from the boundary problems, this was a pretty smooth transaction," Forrester says. From a marketing perspective, he says the listing "and it generated a lot of interest." Its size and age seeded the interest as did the fact that there is a shortage of rental units in the immediate area, according to Forrester. "There aren't many newer smaller multifamily buildings in Arizona," he explains. "Most of them tend to be much bigger."
In addition to offering the highest price for the asset, the buyer was selected because of its aggressiveness in chasing the deal. "They own the property next door so it was a good extension for them," Forrester adds. Juniper Meadows has all two-bedroom units averaging 1,060 sf and renting for about $900 per month.
The builder is hard at work on projects in Surprise and South Phoenix. "They have different game plans on these deals," Forrester says. "They haven't decided whether to sell them or keep them."
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