TEMPE, AZ-With upside expected a renovation, a California couple has purchased the Reserve at Town Lake for $2.7 million from Tempe-based Millennium Town Lake I LLC. The purchase marks the buyers’ first in the Phoenix market.

“They felt like this was a good opportunity. They could not find any good opportunities like this in Southern California,” Karl Abert, a senior associate and director of the national multi-housing group at Marcus & Millichap in Phoenix, tells GlobeSt.com. Charles and Cynthia Eberly of Beverly Hills, beating out four other would-be buyers, entered escrow on the property two weeks after it came to market, says Abert. The fact that they were able to close under 30 days with the highest bid–plus a 30% down payment–all proved a bonus to the seller.

The deal closed at $300,000 less than the list. The buyers obtained a 15-year, $1.9-million loan from Washington Federal Inc. of Seattle at 5.75% for the first three years and adjustable to 6.75% for the remainder of the term.

Located at 330 S. Beck Ave., Reserve at Town Lake was built in 1981. It consists of three two-story buildings with 24 one-bedroom apartments, each 720 sf and renting for $525 per month, and 31 two-bedroom apartments in a 925-sf floor plan for $675 per month. Seven units were vacant at closing, slightly higher than the submarket vacancy rate of 9%, Abert says.

The 2.4-acre Reserve fell victim to some mismanagement, Abert says, adding it will undergo a few exterior improvements from the landscaping to the signs. The previous owner had held the property about five years before deciding to sell.

Abert represented the buyers. Sean O’Carroll of Tempe-based the O’Carroll Group was a principal seller in the deal.

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