PHOENIX-A California investor has purchased the 11-unit 9th Place multifamily property in East Phoenix for $480,000. The deal hit some stumbling blocks on the way to closing, including the departure of tenants during escrow.

“Once it went under contract, out went the tenants,” Dan Dulin, a multifamily specialist at Marcus & Millichap in Phoenix, tells GlobeSt.com. “The seller could not get his arms around the property. It seemed to be falling to pieces during escrow, but we had avery motivated buyer.”

Gary Kurt of La Jolla, CA, emerged the winning bidder out of three offers secured during a four-month marketing period for 3703 N. 9th Place. Dulin says he picked up the listing from another broker and increased the asking price significantly despite reservations by seller Ioan Tanca of Vancouver, WA. The sales price was $495,000, though the final deal closed $15,000 less once the seller, who acted as his own broker, took a commission on the deal. Escrow lasted 65 days. Kurt obtained acquisition financing from the Bank of Internet USA in San Diego.

Built in 1962, the complex had four vacancies at sale time. The buyer plans to spend $25,000 on immediate renovations. The seven one-bedroom units and four two-bedroom units have rents of $475 to $575 per month.

“He was ultra-qualified, was in an exchange and was very forgiving towards deferred maintenance,” Dulin adds. “He has been purchasing properties here in the last 90 days.”

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