MESA, AZ-A Salt Lake City-based developer has re-entered the market nearly 25 years after leaving it. The buyer, paying $31.5 million, plans a condo conversion for the 402-unit Falcon Glen Apartments.
The acquisition is Carlsbad Development LLC's first since the 1980s when they'd developed and sold two properties in Mesa. The company was willing to acquire Falcon Glen at 4225 E. University Dr. as a conversion opportunity from IDB Investments LLC of Santa Barbara, CA because of its architectural style.
"This is very low density, 16 units per acre," says Julie Vaughn, senior vice president with Sperry Van Ness in Phoenix, who represented the buyer. She adds that Falcon Glen units are townhouses, which is why it should do well for sales despite the slowing conversion market. "They can be sold as townhomes rather than as apartments," she explains.
Vaughn tells GlobeSt.com that Carlsbad will invest $15,000 to $25,000 per unit into the conversion, with price points averaging $150,000. She says the current game plan calls for units to be ready for sale within six months.
The complex was 90% occupied at sale time. Local brokers Doug Lazovick with ICC Real Estate and Neil Sherman of Axxiom Partners represented the seller.
Carlsbad is looking for other acquisition opportunities in the area, but Vaughn acknowledges there are no other contracts in hand. "This is a pretty large property. They'll need to complete this one first before they do anything else," she says.
Situated on 24.8 acres, the 40-building Falcon Glen Apartments has one- and two-bedroom units ranging from 617 sf to 919 sf. Rents are $540 to $625.
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