PHOENIX-A strong market has encouraged the owner of the 52-unit Palm Court Apartments to offer his asset for sale. The Mill Valley, CA limited liability company has received $3.55 million for the class B asset.
"He'd owned the property for about three years and was planning to hold onto it, but the market got more interesting in Phoenix," Julie Vaughn, senior vice president with Sperry Van Ness Scottsdale's office, tells GlobeSt.com. "He felt it was a good time to sell because of the market rate so he'll likely use the equity to invest in something else for a better return."
Monterey Group LLC of Phoenix plans to convert the 94%-leased complex at 4410 N. Longview Ave. into condominiums. Vaughn says conversion costs will range from $2,000 to $20,000 per door. "Some of what he's renovating is 'as is,' and some will be premium," says Vaughn, who brokered the transaction for both sides. The sales price per unit will be $200,000.
Monterey Group also is renovating Brookview Apartments, another class B complex at 4401 N. 12th St. Vaughn says the company plans to invest in other multifamily properties throughout the country, but most likely is done with the local market. "I think he's gotten what he's needed from the Phoenix market and will move to other parts," she adds.
Vaughn says there was a great deal of interest in Palm Courts. She also isn't surprised that a converter ended up with the asset. "Converters started moving to class B properties about a year ago and are already down to Cs," she says.
Situated on 1.91 acres, Palm Court Apartments has a mix of studios along with one- and two bedroom apartments. The monthly rents range from $545 to $706.
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