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PHOENIX-A California investor has purchased the 36-unit Phoenix Courtyard apartment community for $2.1 million in the heart of the Camelback Corridor. With only minor improvements needed to the property, the trade closed at $25,000 below the ask.

“The buyer is going to dress it up a little bit. There were some cosmetic issues,” Pete TeKampe, a senior associate with Marcus & Millichap in Phoenix, tells GlobeSt.com. “The look of the building is dated.” Located at 4200 N. 38th St., the 41-year-old Phoenix Courtyard, positioned on 2.4 acres, is equally divided into one-bedroom and two-bedroom units. Monthly rents range from $525 to $625.

TeKampe says buyer Pamela Schumaker of Long Beach, CA, got the asset for $25,000 less than the ask, beating six others, some with higher offers. A financing package delivered by Newport Beach, CA-based Marcus & Millichap Capital Corp. was key to the deal, says TeKampe. Schumaker qualified for a five-year, $1.6-million loan at a fixed rate of 5.25% and 30-year amortization. The purchase was Schumaker’s first in the Phoenix market. The listing was on the market just one week.

There were only four vacancies at closing. The single-story complex sits just down the street from the Pavilions on Camelback, a 64-unit apartment complex that recently set the highest per-unit price for a multifamily property in Phoenix at $140,625. Single-family homes in the neighborhood typically sell above $310,000, says TeKampe, much higher than home sales in other submarkets. The Camelback Corridor vacancy presently is 9% versus the Phoenix average of 10.4% for multifamily properties.

Schumaker was represented by Tom Tokunaga of LB Brokerage Inc. of Long Beach. TeKampe represented the seller, Harris Equity LLC of Venice, CA.

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