Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.