PHOENIX-A Mesa, AZ buyer willing to assume a Fannie Mae, fixed-rate loan has edged out nine bidders to acquire the 351-unit Bellridge Apartments for $14.5 million. Another aspect in buyer APT Investment Properties LLC's favor was its willingness to pay $500,000 above the $14-million ask.
The new owner also had no qualms about putting 50% down for the acquisition of 844 E. Bell Rd., according to Alon Shnitzer, an investment associate with Marcus & Millichap Real Estate Investment Brokerage Co. in Phoenix. "What he's planning on doing is improving the property," he adds.
The North Phoenix asset, which was 90% leased at sale time, is positioned in a high-growth area, where condo conversions are taking available units from the market. "We had a 30-day marketing period with 10 offers," Shnitzer says. He tells GlobeSt.com that the buyer assumed a $7.8-million loan with a 10-year term that matures in August 2013 and a 5.01% fixed rate.
Seller Bellridge Associates Ltd. of San Francisco had owned the complex two decades. "When you own a property for that long, it provides added value that a buyer can put into it for a strong upside," says Shnitzer, who partnered with Marcus & Millichap vice president Peter Katz to work the sale.
Shnitzer says the seller was a syndicate formed during the 1980s that decided to sell its last property in Arizona to focus resources on California properties. The syndicate sold Toscana Cove Apartments, formerly known as Glenbrook Apartments, in Tucson in mid-2005.
The 1983-constructed Bellridge Apartments has one- and two-bedroom units measuring 460 sf to 760 sf. The units rent for $475 to $625 per month.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.