PHOENIX-A local trust has sold the 134-unit Montana Apartments to an active multifamily asset buyer for $15.7 million in an off-market transaction. Seller Bassham Trust had acquired the asset in 2001 for $10.1 million.
"We had an existing relationship with the seller so we approached her to ask if she might have interest in an offer," says David Fogler, senior vice president with Grubb & Ellis/BRE Commercial LLC's Phoenix office. Fogler, who teamed with Steven Nicoluzakis on the 7611 S. 36th St. sale knew that the Seattle-based buyer, S-J Management LLC, operating under the name Montana Apartments Associates LLC, was actively looking for class A properties. Fogler asked S-J CEO Michael Sauter if he would be interested in making a play for the 1999-constructed Montana Apartments. Sauter agreed. "Mike is an active buyer in the market right now so we felt it would be a good fit," Fogler tells GlobeSt.com.
Though the 12-building complex is fairly new, Fogler believes the buyer will put some capital into upgrades and renovations, especially exteriors and the clubhouse. Otherwise, Fogler believes the 95%-occupied complex will provide a good investment for the buyer. "It's got the amenities with a good location on a busy street," he says. "It'll do well for him."
Montana Apartments has a mix of one-, two- and three-bedroom units ranging from 740 sf to 1,102 sf. Monthly rents are $721 to $1,027.
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