MESA, AZ-A repositioning pro has collected $25.26 million after investing 15 months into the 396-unit Orange Grove Apartments. The seller has realized a gain of nearly $9 million in the sale to a Canadian company.
The buyer of record is Tidan USA/Orange Grove LLC from Montreal; the seller of record is SFB Terrace Park Apartments LLC from Phoenix. "By the time this was sold, occupancy was at 100% with a waiting list," Paul Gross, director with Cushman & Wakefield of Arizona Inc. in Phoenix, tells GlobeSt.com about the 111 N. Gilbert Rd. property.
Gross says the seller had to overcome serious tenant challenges and a lot of deferred maintenance during the hold. "They're very adept at meeting those challenges and turning them around," says Gross, who teamed with C&W senior director Todd Braun to sell the property. "They vastly improved the operations, which was the catalyst to adding value."
Gross acknowledges that Orange Grove had been on the market for awhile while the seller continued to repair it. When the marketing closed, there were nine offers on the table.
"The reason the buyer got the bidding is it was willing to step up and pay a great price," Gross says. "It was also willing to go hard very early with significant earnest money." And, he adds, that Montreal-based buyer also had a proven track record after last fall's purchase of the 270-unit Desert Sky Apartments at 4620 W. McDowell Rd. in Phoenix.
Orange Grove Apartments, built in 1984, is a mix of one- and two-bedroom units, measuring 570 sf to 771 sf. Monthly rents range from $552 to $647.
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