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PHOENIX-A California group of investors has survived a 14-month escrow to acquire the 117-unit Fairmount Greens complex for about $5.1 million. The deal hinged on a difficult loan assumption.

“This is a well-located property, just south of the Biltmore area in Phoenix. The difficulty was that we had a conduit loan that had to be assumed,” says John Kobierowski, an associate partner with Hendricks & Partners in Phoenix. “They were basically handed a great property. It was stabilized at closing.”

Kobierowski tells GlobeSt.com that the 10-year loan in question was originally provided by Greenwich Capital Markets Inc. of Greenwich, CT, at an interest rate of 6.85%. The recent assumption was handled by Midland Loan Services Inc. of Overland Park, KS. At closing, the balance of the loan was close to $3.1 million, says Kobierowski. The buyer paid the balance of the purchase price with cash.

Located at 3851 N. 28th St., the 1973-built Fairmount Greens consists of 82 one-bedroom and 35 two-bedroom units. Seller Fairmount Greens LLC of Phoenix owned the property since September 2001. Rent averages $647, with no vacancies listed at closing.

The buyer, an investment group from Palos Verdes Estates, CA, and headed by principal Ethan Smith, intends to initiate renovations that will lower operating costs and improve the community’s overall efficiency. Fairmount Greens is the group’s third acquisition in the Phoenix market, says Kobierowski, who along with Greg Thielen of Hendricks & Partners handled the transaction on behalf of both parties.

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