X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PHOENIX-A back-up buyer for a 156-unit multifamily property is put in the driver’s seat after brokers cancel a contract that’s in hand for one with up-front, non-refundable earnest money.

The Luis A. Macaya Trust/Checkmate LLC and Northridge Eight LLC from California paid $7.45 million or just $500,000 below the ask for the Verdana Apartments at 5704 W Thomas Rd. “The property had been under contract with someone else. When it was clear this was someone not interested in performing, we brought someone else in,” explains Julie Vaughn, senior vice president for Sperry Van Ness’ Paradise Valley, AZ office. She represented the buyer and the seller, BNR Veranda Associates of Seattle.

Vaughn tells GlobeSt.com that the California group came along with a very strong offer as well as up-front non-refundable money. “This is something new in Phoenix,” she says. “You usually don’t see non-refundable money put down, at least, until the financing is in place.”

The 10-building complex was developed in 1986 on 5.36 acres. It was 95% occupied at closing. The unit mix is 80 one-bedrooms and 76 two-bedroom, with monthly rents ranging from $490 to $650.

Vaughn points out the buyer is investing in the complex’s future potential and changing demographics rather than the present dynamics of its location, which isn’t one of the city’s better areas. “This is the fastest-growing area in Phoenix,” she adds. “We’re using a lot of units for condo conversion. That, plus lack of new apartment construction, indicate that there will be a high demand for multifamily housing during the next several years.”

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?

GlobeSt

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.