PHOENIX-A local buyer has saved the 349-unit Estancia Del Sol from foreclosure, paying $11.5 million for the asset to a seller from Los Angeles. The new owner is starting out with an 80%-leased value-add.
Buyer Milivoje Djordjevich will be addressing deferred maintenance at the class C complex at 4001 W. Camelback Rd., according to Andrew Tate, senior adviser for Southwest Apartment Advisors in Phoenix. He says Lyle Wagner, who headed up a partnership from Los Angeles, put the asset on the market before foreclosure could occur. Tate tells GlobeSt.com that the imminent action was tied to $8.7 million of existing bond financing with $550,000 annual payments. "This ended up being a complicated deal involving compromise with existing lenders," he adds.
Tate says Estancia del Sol, a gated complex, attracted strong interest during the marketing period due to its Camelback Road address. Djordjevich already owns close to 2,500 units in the metro so that experience helped him to win the deal for early 1970s complex, the broker adds. "He has a great reputation for altering these types of blue-collar properties," Tate says. "He also owns several in the immediate vicinity of this deal, so he was the obvious guy for it."
Djordjevich is known for long-term holds. "He rarely sells anything," Tate says.
Djordjevich plans to upgrade the complex, with what Tate labels as cosmetic improvements to common areas. The new owner, who will self-manage Estancia del Sol, also plans to fix up apartment interiors on an as-needed basis. "With other owners there can be third-party management typically," Tate says. "But this guy has a very hands-on ownership and operation."
Situated on 7.5 acres with 1,000 feet of frontage on Camelback Road, Estancia Del Sol has 16 two- and three-story buildings, which had a $1 million invested into it in 2003 and another $750,000 in 2005. The unit mix consists of studios, one- and two-bedroom units measuring 240 sf to 789 sf. The monthly rents go from $395 to $739.
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