CHANDLER, AZ-The second time was the charm for the 289-unit Olive Grove Apartments, with a joint venture snagging the asset for $32.4 million. The complex went on the market in early 2006, but fell out of escrow when a condo converter couldn't close the deal.
American Properties Development Inc. of Seattle, however, wasn't discouraged about the prospects of selling the complex at 2150 S. Arizona Ave. "The seller was a TIC and they'd realized the values for the investor," says Rick Meyer, a broker with Marcus & Millichap Real Estate Investment Brokerage Co.'s Phoenix office. He teamed with Marcus & Millichap vice president Peter Katz and associate Taylor Shultz to sell the holding.
Meyer says Olive Grove was pulled off the market when the condo converter's deal fell out and then re-introduced shortly thereafter. The second time, the class A complex was on the market six months, attracting more than a dozen offers. The winner of the second face-off is Paul Mashni of PEM Investments LLC in joint venture with General Electric Capital Corp. in Stamford, CT.
"PEM is one of the more qualified buyers out there. He also offered one of the higher prices," Meyer tells GlobeSt.com. The buyer also was willing to assume an existing $14-million loan, set to expire in 2013, to close on its second deal in the metro. Just recently, PEM paid $15.3 million for the 188-unit Foxfire Apartments at 1701 E. 8th St. in Phoenix.
Meyer says the new owner plans to renovate Oak Grove's interiors and exteriors to move rents. The amount to be invested isn't available as yet. The complex, built in 2001, contains one-, two- and three-bedroom units, ranging from 687 sf to 1,232 sf. The rents per month go from $689 to $959.
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