PHOENIX-Eighteen months after acquiring the 480-unit Monteviejo Apartments, S-J Management LLC has sold it to Equity Residential Properties Trust. The class A asset has traded for $59.9 million.
Seller representative David Fogler, senior vice president with Grubb & Ellis|BRE Commercial LLC's in Phoenix, says the Seattle-based seller originally planned a long-term hold when it acquired the 2220 E. Beardsley Rd. property in the Desert Ridge area for $51 million in October 2005. "Because of attractive pricing in the marketplace, they elected to put it on the market and selected Equity because of the company's reputation in the market and ability to close," Fogler says. Steven Nicoluzakis, a Grubb & Ellis senior vice president, and Fogler marketed the 99%-leased complex for 30 days, reeling in 12 offers.
Fogler tells GlobeSt.com that S-J Management did little to the property other than burn off concessions, which accounted for the increase in value. S-J Management, an active player in the Phoenix market, does upgrade some holdings, but the Monteviejo, built in 1999, didn't require anything other than continued sound management.
"S-J's goal is to buy high-quality, well-located apartment buildings," Fogler says. "When he goes into them, it's not to hold them short term, but if the opportunity presents itself, he'll sell."
The Monteviejo has studio apartments along with one-, two-, three- and four-bedroom units. The studios measure 504 sf and rent for $712. The balance ranges from 612 sf to 1,151 sf, bringing in rents from $804 to $1,305.
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