Keller's new asset at 800 W. Forest Meadows St. is about four miles northwest of its other holding, the 120-unit Ponderosa Park Apartments at 1201 E. Ponderosa Pkwy. "The buyer liked the market. It's a solid, high-occupancy market. And, the buyer thinks that with the upgrades and occupancy, they'll be able to increase rents," says James F. Pierson III, principal with Johnson Capital's Phoenix office. Woodcrest was 98% leased at sale time.
To make the close, Keller Investments obtained a $16.25-million loan from Needham, MA-based CW Capital Investments LLC. Pierson and Johnson Capital's vice president Keaton G. Merrell arranged the financing.
Pierson tells GlobeSt.com that Keller Investments attracted plenty of lenders based on its track record at Ponderosa Park Apartments. He says CW Capital offered a seven-year loan at less than a 5.5% fixed-rate interest. The financing, packaged at a 74% loan to value, has interest-only payments for the first two years.
Keller Investments bought Woodcrest from the Bassham Family Trust of Phoenix, which had rehabbed the 18-year-old complex two years ago. "The seller had done a lot of work at Woodcrest and made a lot of capital improvements to the property," Pierson says, "and Keller has the ability to run this efficiently." Woodcrest has one-, two- and three-bedroom apartments, averaging 802 sf. Rents go from $755 to $1,100 per month. Marc Huisken, senior vice president for Phoenix-based Grubb & Ellis/BRE Commercial LLC, brokered the transaction.
Pierson doesn't believe Keller Investments is looking for additional acquisitions in the city. "They're active buyers, but want to be more diverse throughout the Southwest," he explains.
© 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.