CHANDLER, AZ-One year after acquiring the 272-unit San Ventura Apartments, a Seattle player, active in the market, has sold the class A complex for $40.7 million. S-J Management LLC turned over the asset to another buyer well-versed with the local market.
The buyer was a joint venture between Del Rey Property Group LLC from Marina Del Rey, CA, ColRich Communities Inc. from San Diego and Horsham, PA-based Capmark Finance Inc. The partnership beat a dozen other offers, including REITs, pension fund advisers and institutional investors, for the 98%-leased complex at 3600 W. Ray Rd.
"We went with Del Rey because they'd acquired two properties within this general area during the past 30 to 60 days. They'd done their due diligence and we had a good feeling about their ability to perform," says David Fogler, senior vice president with Phoenix-based Grubb & Ellis/BRE Commercial LLC. He and Grubb & Ellis senior vice president Steven Nicoluzakis brokered the transaction for both sides. Just recently, Del Rey Property Group acquired the 272-unit break Laguna Villas at 4800 S. Alma Rd. and the 112-unit Santa Rosa Apartments at 3425 E. Chandler Blvd.
Fogler tells GlobeSt.com that S-J Management built value in the class A asset it had acquired during May 2006 for $33 million by extensive renovations of the leasing office, club house and fitness center as well as upgrading pool areas. Upgrades also included gated access and painting the property. "What he did was take a mid-1990s property and give it the feel of a 2007 property," Fogler adds. "That's where the value increase came from. He did the work, raised the rents and improved the resident profile."
Although Fogler acknowledged he wasn't certain if S-J sold San Ventura ahead of a typical hold period, he says company CEO Michael Sauter has a good bead on the market. "He tracks it very closely and is opportunistic on the buy and sell side," Fogler adds. "I think he felt that with everything going on in Chandler, it was a good time to put the property on the market after completing the renovation."
Built in 1996, San Ventura Apartments has one-, two- and three-bedroom apartments, ranging from 798 sf to 1,263 sf. Monthly rents are $875 to $1,300.
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