PHOENIX-A Los Angeles buyer new to the market has acquired 748 units in four transactions, all in one day. The buyer has paid $47.52 million for the quartet, which he plans to renovate in a value-add play.
The apartments are not close to one another, but they share a few things in common. "These are all value-added opportunities and they're mid-1980s construction," explains Michael Hubl, senior associate with Marcus & Millichap's Phoenix office. Hubl, who brokered three of the four transactions, tells GlobeSt.com that Richard Nathan plans to reposition and renovate the class B assets. And, he will likely be looking for more investments in the area.
"He likes the fundamentals of the Phoenix market," Hubl says, adding the buys give Nathan a good foothold in the market.
The 82%-occupied portfolio is a mix of studios and one- and two-bedroom units. The average unit is 700 sf; the average rent is $500 per month.
Nathan bought the 216-unit Desert Wind Apartments at 4140 W. McDowell Rd. in Phoenix from Florin Ianc of Phoenix. In a deal with Daiuy Nguyen of San Diego, Nathan acquired the 196-unit Sandal Ridge Apartments at 645 N. Country Club Dr. and 136-unit Penny Lane Apartments at 544 E. Southern Ave., both in Mesa. He purchased the 200-unit Las Vistas at Papago Park at 1010 N. 48th St., also in Phoenix, from M.T. Aliniazee of Corvallis, OR. Ric Holoway, vice president with Marcus & Millichap's Phoenix office, brokered the Las Vistas transaction.
As for the sellers, "they've been typical in the market," Hubl says. "A lot of folks buy on Monday and sell on Tuesday."
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