PHOENIX-Fifteen years after it bought the 135-unit Papago Vista Apartments for about $2 million, Papago Vista Apartments LLC of Phoenix has sold it for $9.4 million at a 6% cap rate.
Russell and Marcia Bill of Southern California, first-time Phoenix buyers, beat out multiple offers during the four-month marketing period to win the nod for the 95%-occupied complex at 5312 E. Taylor St. "The buyers were in an exchange and could move quickly on this deal," says Dave Fogler, senior vice president with Grubb & Ellis|BRE Commercial LLC in Phoenix. The seller's broker says the new owner was reinvesting proceeds from the sale of commercial property in California.
The class B Papago Vista is situated on 4.46 acres near the Papago Municipal Golf Course and a short drive from the Phoenix Municipal Stadium and Papago Military Reservation and Airfield. Fogler tells GlobeSt.com that the seller is disposing of assets in Phoenix and putting the proceeds into Texas properties. "They have another in escrow, which will close sometime this year and then they'll be out of the area," he says.
The broker points out that Papago Vista is 21 years old, but it's in good shape and doesn't require much in the way of improvements. It was listed for $9.75 million or $72,222 per unit.
The complex contains one- and two-bedroom units measuring from 460 sf to 874 sf. The monthly rents range from $575 to $760.
Fogler teamed with Grubb & Ellis|BRE's Steven Nicoluzakis. Juan Cardenas with Re/Max Community Realty in Whittier, CA, represented the buyer.
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