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SCOTTSDALE, AZ-After being on the market just a few weeks, the 28-unit Sir Lancelot complex along Miller Road has sold for $15,000 above the asking price to one of 12 suitors. Steven & Kimberly Olafson of California purchased the property for about $1.2 million, marking their second Arizona buy in three months.

“There were a number of factors that piqued investor interest in the property,” Mike McClure with the Scottsdale office of RE/MAX Commercial Investment tells GlobeSt.com. He quickly points to the desirable Scottsdale address across from Scottsdale Stadium, frontage on Miller Road and potential upside in rent as the leading reasons for the property’s appeal to investors. Rent brings in $525 per unit monthly for the one-bedroom, one-bath designs. In comparison, the average rent in the area is $650 per unit per month.

McClure acknowledges a $1-million price tag opens doors to buyers. The investor lineup also was larger than usual because of the barriers to entry in the Scottsdale submarket, particularly for class C multifamily product.

The Olafsons were purchasing the property to satisfy 1031 exchange requirements for a multifamily sale in California. Brett Polachek and Todd Braun, both of the Phoenix office of CB Richard Ellis Inc., represented the buyers.

McClure and RE/MAX brokers Tim Hatlestad and Hank Daugs negotiated on behalf of the seller, the Kranzfelder Family Revocable Living Trust. The complex, built in 1959, is a high-density complex on a small lot. Although redevelopment or luxury infill is not really an option with the property, McClure says it is a repositioning candidate should the new owners choose to do so. McClure says the buyers have at least $30,000 earmarked for renovations.

In April, the Olafsons purchased the 16-year-old, 52-unit Casa Grande Village in Tucson. That complex sold for $1.4 million.

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