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PHOENIX-A portfolio disposition of metro Phoenix properties by Larkspur, CA-based FowlerShore & Flanagan is practically a done deal, with two complexes sold and three under contract.

A Phoenix partnership, led by local investor Ed Klugman, has closed a $7.7-million takeover of the 264-unit Quail Point complex at 3045 N. 67th Ave. in Phoenix. Klugman’s various partnerships own about 2,000 units in the region. About 10 months ago, a Klugman-led entity purchased the 166-unit Phoenician Palms, also a Phoenix holding.

Todd Braun of CB Richard Ellis Inc.’s Phoenix office tells GlobeSt.com that the portfolio is being sold so FowlerShore & Flanagan can “clear the deck” and reorganize. The properties under contract are the 320-unit Fiesta Park and 118-unit Park Village, both in Mesa; and 103-unit Windtree Village in Phoenix. Like the two now sold, all properties are value-add buys, Braun says. Buyers have not been intimidated because the problems are considered “very curable,” he explains.

The 65%-occupied Quail Point is a 14-year-old, class B property. Klugman intends to remodel and reposition the property, according to Braun. The average unit size is 743 sf. Rent averages $580 per month. As the numbers clearly show, the opportunities are there to increase value, raise occupancy and boost rent, he says. CBRE brokers Paul Gross and Bert Kempfert along with Braun represented buyer and seller in the talks.

Today’s market is “a window of opportunity” for buyers, says Braun. And today’s buyers are going to be reaping the benefits of their investment moves most likely in six to 18 months as part of the sure-to-come rebound, he firmly believes. Part of his optimism is tied to rising housing prices and the balance to the metro’s unfaltering dynamics, long an attraction for new permanent residents and the predictable flow of seasonal snowbirds. In fact, Braun expects new people and businesses will be heading to the Valley in the not so distant future.

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