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PHOENIX-An investment group from Los Angeles has made its third multifamily buy in the Valley in 18 months, paying $12.2 million for the 257-unit Casa Real Apartments.

SRP Investments, led by Shoshanti Jogani, was one of 10 bidders on the class B complex at 3816 N. 83rd Ave. “Casa Real offers a value-added opportunity,” says Peter Katz, vice president of investments for Marcus & Millichap Real Estate Investment Brokerage Co. “The interiors are tired and the exterior needs upgrading.” He estimates the buyer will spend nearly $400,000 or $1,500 per unit on upgrades.

Katz, teaming with Marcus & Millichap’s Alon Shnitzer, tells GlobeSt.com that SRP Investments claimed the asset, which was on the market six weeks, because it is a proven closer and was able to get a high leverage loan. He says the buyer obtained $9.8 million from Regions Bank with a 5.31% fixed-rate interest with a 10-year term. Seller Ray Zuckerman of Phoenix is planning to invest in management-intensive assets, says the broker.

Casa Real Apartments, sitting 11.8 acres, is comprised of 32 one- and two-story garden-style buildings. Built in 1986, the complex is 92% occupied. It has 60 one-bedroom units with 770 sf; 177 two-bedroom units, 950 sf; and 20 three-bedroom units, 1,150 sf. Monthly rents range from $519 to $849. With the renovations, SRP Investments will be able to increase rents $25 to $50 per unit, according to Katz.

With the acquisition of Casa Real Apartments, SRP Investments owns more than 700 units in the Valley. Katz says the investment group is poised to close soon on a fourth property.

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