GLENDALE, AZ-Following a nine-month escrow period, Sunvest Communities USA today will follow through on its plan to buy the 504-unit Villas at Camelback Crossing for $62.75 million. But, the plan now calls for an immediate flip to a San Diego investor for $64.7 million due to the condo market slowdown.
The Fort Lauderdale, FL-based Sunvest has had the 5150 N. 99th Ave. property under contract since March. It originally planned to convert the units to condominiums. "The market cooled a bit from a condo conversion standpoint," explains Rue Bax, partner with Intercon West Realty Advisors of Phoenix, who represented the seller, S-J Management LLC of Seattle.
Bax tells GlobeSt.com that Sunvest was committed to closing the deal from the start, but the condo market slowdown changed the plan. As a result, the CB Richard Ellis team of Sean Cunningham and Tyler Anderson worked out the pass to Certe Group LLC of San Diego.
It's not the first time that Villas at Camelback Crossing almost sold to a converter. Before S-J Management acquired it for $45.5 million in late 2005, a converter had dibs on it. When that contract fell out, S-J Management bought the asset and kept it as a rental, leasing it up to 91% before bringing it back to market.
Bax predicts Certe will keep the Villas as a rental. "From what I know of the new buyer, it's not a conversion operation," he adds.
Built between 2002 and 2004, Villas at Camelback Crossing has one-, two- and three-bedroom units, ranging from 801 sf to 1,315 sf. Monthly rents go from $800 to $1,075.
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