SunVest Heads Out With $17M, 112-Unit Sale

PHOENIX-A Hallandale, FL-based converter, who'd entered the market with high hopes in early 2006, has sold its last conversion attempt, the 112-unit Santa Rosa Apartments. SunVest Communities USA, which sold the class A complex for $16.5 million, or $147,321 per unit, has officially departed the metro area with the transaction.

According to Apartment Realty Advisors' vice president Bret Zinn, the marketing period for the 10-year-old complex at 3425 E. Chandler Blvd. was two weeks during which SunVest received multiple offers. Buyer Del Ray Property Group LLC of Marina Del Ray, CA came forward with the highest offer after just closing on the 272-unit Laguna Hills at 4800 S. Alma School Rd. in Chandler for $38.5 million. "That's when SunVest immediately took it off the market," Zinn tells GlobeSt.com.

Zinn says the Del Rey Property Group is aggressively pursuing other acquisition opportunities in the market, but nothing else is under contract. "They're strictly an apartment-for-rent operator," he says. "They're not looking to convert."

Zinn adds that the Santa Rosa complex has the type of bones to move from an income-producing asset to a condo down the road although present conditions weren't right for the move right now. "SunVest didn't have to do a ton of work on this one," he explains. "It was in pretty good shape. They did do some exterior painting, replacement of crown molding in the units and interior paint. Mainly a lot of TLC type of work."

Situated on 5.79 acres, Santa Rosa Apartments was offered at a 5.42% cap rate. The 92%-leased complex has one-, two- and three bedroom units, ranging from with 789 sf to 1,276 sf. Monthly rents start at $898 and go up to $1,165.

ARA principal Brad Goff and associate David Cohen worked with Zinn and Steve Goldstein and Jason Buxbaum with Americon Realty Services Inc. of Phoenix. Jim Leguizamon of Del Rey negotiated for the buyer.