Alon Shnitzer, associate vice president and director in Phoenix for Marcus & Millichap Real Estate Investment Services, says unloading the 90%-leased complex at 6131 W. Thomas Rd. took some patience. "This was under LOI three times and timing killed the deals in all cases," the seller's broker says. "The credit crunch happened and that created a bunch of hurdles we had to overcome."
Shnitzer tells GlobeSt.com that the fourth buyer used 1031 exchange money from a sale in San Diego to buy the class B Brookside. The escrow period lasted three months. "The asset was '80s construction and within his exchange parameters," Shnitzer says. "He also had a comfort level with us because he's worked with our San Diego office in the past." The buyer will continue running the asset as a rental property, with Cornerstone Management LLC of Boca Raton, FL handling management and leasing.
Situated on 6.87 acres, Brookside Apartments has studios, one- and two-bedroom units, ranging from 400 sf to $858 sf. Monthly rents are $439 to $669.
The Logan, UT-based seller "decided to sell because they'd owned it for 15 years," Shnitzer says. "Depreciation was low at that point, and they were interested in redeploying the equity earned from the sale into a newer project." Wasatch acquired Brookside Apartments in 1993 from the RTC for $2.7 million.
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