PHOENIX-After investing one year into the play, a joint venture has accepted an off-market offer for the 320-unit North Park Village. Orion-Northpark Village Associates LLC picked up $25 million, triggering a $6.7-million gain for the seller and a condo conversion plan for the buyer.
The JV bought the holding at 17625 N. 7th St. in March 2005 from Denver-based United Dominion Realty Trust Inc. "Orion is an opportunistic buyer and seller and they recognized a window of opportunity to exit at close to the top of the market," explains Neil Sherman, senior adviser with Sperry Van Ness in Phoenix. The buyer is GDC Corp. of Phoenix, which took the deed as North Park Village LLC.
Sherman tells GlobeSt.com that GDC invest another $25,000 to $30,000 per unit to convert the 23-year-old complex into condominiums. Price points for the units will start at $150,000.
"The target is the middle-income consumer," says Joseph Dietz with Sperry Van Ness in Phoenix, who assisted in the transaction. "Many of these would pay just above the apartment price to acquire it." The 30-building complex, situated on 11.82 acres, has one-, two- and three-bedroom units. Monthly rents go from $699 to $1,049.
Sherman and Dietz say Orion acquired the asset for a three- to four-year hold. In the past year, Orion invested nearly $500,000 into renovations plus brought in a stronger management team to increase occupancy, which was 92% at sale time.
When the opportunity arose for a sale, the JV took it. "The market, being what it was, provided a ripe time for him to sell to a condo converter," Sherman says.
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