PHOENIX-A long-time holder of the 395-unit Chelsea Park Place Apartments has opted to sell it to a San Rafael, CA buyer. The new owner, with a solid footprint in the area, has paid $27.7 million for the class B complex in an off-market transaction.
Bluth Enterprises of Glenbrook, NV owned the complex at 4104 E. Broadway Rd. for 20 years, but decided to dissolve the partnership and sell its last property to Bronco Real Estate Corp. Last fall, the partnership sold the 459-unit Gilbert Meadows Apartments at 275 W. Juniper Ave. in Gilbert to a different buyer.
On the other side of the deal, Bronco is active in the market. Marc Huisken, senior vice president with Grubb & Ellis/BRE Commercial LLC's multi-housing investment group in Phoenix, says Bronco is getting ready to sell a property in the not too distant future. "When that sells, we'll be looking to buy something else," says Huisken, who negotiated the Chelsea Park Place transaction.
Huisken tells GlobeSt.com that the 93%-leased Chelsea Park Place appealed to Bronco because of its upside potential. The buyer plans to upgrade the complex and hire a third-party company to manage it. "With the way our market is growing, and the lack of new product coming on line, based on the price Bronco bought it for, they can go in there, refurbish and increase the rents," Huisken adds. "That'll be a good investment for them."
Situated on a little more than 19 acres, Chelsea Park Place has a mix of one- and two-bedroom apartments. The average size is 687 sf; the monthly rent is $652.
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