(To read more on the multifamily market, click here.)

MESA, AZ-Following yearlong complications with one buyer, a local lender, who’s turned into an investor, has acquired the 238-unit Augusta Ranch Apartments for $24.85 million.

The first-time commercial buyer, Mick Diessner of Phoenix, is planning to invest another $6,000 to $8,000 per unit to convert the units to condos. When the conversion’s done, the projected sales price will be $160 per sf to $180 per sf for the three-year-old complex at 9335 E. Baseline Rd.

The property was under contract to a buyer who “couldn’t get it done,” says Jerry J. Tenge, senior vice president with Colliers International Inc.’s Phoenix office, who brokered both sides of the deal. He tells GlobeSt.com that it was ultimately the local lender who ended up purchasing the property. “He stepped in, gave the guy his earnest money, then took it over,” he says.

Tenge goes on to say that the property’s seller and developer, Andy Welch of Tegan Communities LLC in Scottsdale is divesting his local assets and deploying the gain into development in Russia. Another Tegan-developed property, the 504-unit Villas at Camelback Crossing at 5150 N. 99th Ave. in Glendale is in escrow, with a scheduled closing date of mid-December. “Once that’s done, he’s gone to other opportunities,” Tenge adds.

Augusta Ranch, situated on 15.62 acres, was 95% occupied at closing time. It’s a mix of 68 one-bedroom units, ranging from 797 sf to 856 sf, and 85 two-bedroom apartments, measuring 936 sf to 1,146 sf. Rents go from $735 to $995 per month.

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