PHOENIX-Beating out seven offers, a Brooklyn-based investment group has bought the 288-unit Waterfront Apartments, formerly known as Portofino on the Lake. Sources say the class B complex has brought $18.64 million.
Although the listing brokers won't discuss the seller or the final price, local sources, who weren't involved with the transaction, say the seller is Archstone-Smith of Englewood, CO. They say Archstone-Smith got the 93%-leased complex at 11459 N. 28th Dr. as part of a portfolio buy.
The new owner of the class B complex is Summerhill West LLC-Rebecca Realty Management. Mark Forrester, a partner with Hendricks & Partners' Phoenix office, acknowledges that the asset, which was developed in the late 1970s and early 1980s, is atypical for the seller's investment strategy and portfolio. He says the seller has two other complexes in the metro, but isn't planning to sell them at this time.
Forrester tells GlobeSt.com that the deal, from start to finish, took about six months because a bond had to be paid on the property. The buyer ended up taking out a new loan on the property.
"We selected Summerhill because they offered the best overall deal," Forrester says. "Plus that was a buyer we'd worked with before so there was a comfort level in their ability to perform." Hendricks & Partners' associate partner Brent Long teamed on the sale.
Forrester says the buyer typically makes upgrades to its investments, but he's not sure what type of improvements will be made to Waterfront Apartments. Situated on 9.58 acres, Waterfront Apartments has one-bedroom apartments ranging from 527 sf to 618 sf and two-bedroom designs from 774 sf to 899 sf. Rents go from $542 to $680 to $820 per month. The buyer plans to self-manage the complex.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.