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

CHANDLER, AZ-A Canadian condo converter has made an offer a local buyer couldn’t refuse, resulting in the sale of the 230-unit Lakeside Village for $21.3 million. The off-market transaction ends nearly a decade of ownership by a limited liability company from nearby Tempe.

According to seller representative David Fogler, senior vice president with Phoenix-based Grubb & Ellis/BRE Commercial LLC, the seller paid $10.75 million for the class A multifamily complex in January 1997. Over the years, Chandler Lake LLC invested in upgrades and improvements. “They felt the market timing was right to take advantage of interest,” adds Fogler, who partnered with Grubb & Ellis senior vice president Steven Nicoluzakis to sell the 12.3-acre development at 855 N. Dobson Rd.

Fogler tells GlobeSt.com that Green Developments Inc. of Vancouver, BC was one of the first to show interest by placing a solid offer before marketing could begin for a no minimum-ask listing. “We did have strong initial interest,” he adds. “But instead of going through an extended marketing period, the seller elected to accept the offer.” From the seller’s perspective, the buyer was also attractive because of few contingencies, a strong track record and an ability to close, he adds. Green Developments was represented by Marcus & Millichap Real Estate Investment Brokerage Co.’s Phoenix office.

Chandler has become one of the hot areas for condominium conversion in the past two years, with local and out-of-state investors zeroing in on class A and B rental properties as prime candidates, particularly those with one- and two-bedroom units. The 96%-leased Lakeside Village, built in 1987, hits the sweet spot, with the favored mix and units averaging 787 sf. At sale time, the complex’s average rent was $683 per month.

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