X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PHOENIX-Spinnaker Cove, the only post-1986 apartment complex in East Central Phoenix has changed hands. The 22-unit property at 3208 East Flower St. brought $1.02 million from Carmelita DeLong of Phoenix.

DeLong used a 1031 Exchange of a 10-unit complex in Phoenix to drive the deal. Pete TeKampe of the Phoenix office of Marcus & Millichap represented DeLong and seller, Mohamadali Abolahrar of Rancho Palos Verde, CA in the sale.

TeKampe tells GlobeSt.com that Abolahrar is a pharmacist whose real estate assets include the Rocksberry Pharmacy in Brentwood, CA. He wanted to sell the multifamily holding so he could expand his pharmacy interests, says TeKampe. The seller originally was seeking $1.1 million for the 16-year-old property. TeKampe says the complex was on the market for about 45 days and baited eight offers.

Spinnaker Cove has eight one-bedroom units and 14 two-bedroom units. The units range in size from 540 sf to 735 sf. Rent brings in $495 to $595 per month.

A Marcus & Millichap report says increased concessions have nullified the average asking rent increase by almost 2%. TeKampe, author of a recent report for the Arizona Multihousing Association, said the most common concessions are $199 move-in specials and offers for one month of free rent in exchange for a 12-month lease.

Widespread concessions are coming in a market with an average 10% vacancy. That, TeKampe says, is up almost a full percentage point from a year ago. The average takes into account some submarkets with vacancy as high as 26%, making the metro area ripe for concessions.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.