PHOENIX-A private investor from Mesa has picked up a second multifamily property on the city's north side, paying $17.5 million for the 437-unit Desert Star Apartments. The class B asset is the seller's last one in the city.
"We represented the buyer and approached the seller to tell him the buyer was interested in acquiring the property. And, we were able to agree on price," says David Fogler, senior vice president with Grubb & Ellis|BRE Commercial LLC. He says that Milivoje Djordjevich acquired the 351-unit Bellridge Apartments at 844 E. Bell Rd. so the acquisition of Desert Star, situated at 1106 W. Bell Rd., was a good complement to that acquisition.
"He was familiar with the area and he liked it," Fogler adds. The area, just inside Loop 101, includes the Turf Valley Race Course and is close to other municipal golf courses.
Fogler tells GlobeSt.com that the 24-year-old complex was 95% occupied at closing. He says Djordjevich is an opportunistic buyer who is interested in larger complexes.
The 12-acre complex has a mix of studios and one-bedroom apartments. Studios average 327 sf, with rents ranging from $429 to $449 per month. The one-bedroom units, averaging 520 sf, are going for $489 to $509 per month.
Fogler says the seller bought Desert Star in 1989 for $6.7 million. He wasn't privy to the seller's motivation for exiting the market.
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