PHOENIX-An Arizona investor has nearly doubled his investment on Palm View Manor Apartments, selling the 20-unit complex for the full $1.3 million ask. The deal sets up the second trade of the vintage multifamily asset in four years.

Seller Erik Nielsen of Peoria paid $825,000 for the class C property at 1930 W. Myrtle Ave., but worked through a repositioning that took occupancy to 100%. “His equity had built up and he wanted to exchange into something larger,” explains Ryan Ash, investment associate with Marcus & Millichap Real Estate Investment Brokerage Co. in Phoenix. “This was Nielson’s only asset in the area.” He says Palm View attracted a great deal of interest during its week-long sojourn on the market, with Laki LLC, led by George Bustamante of Costa Mesa, AZ topping two other offers for the asset. Ash and Marcus & Millichap’s Brian Smuckler worked out terms for both sides of the deal.

Ash tells GlobeSt.com that the 1962-constructed, single-story complex of all two-bedroom units was in excellent shape, with no major improvements necessary. “There’s tremendous upside potential in the rent and a stable tenant base,” he adds. “This should do very well for the new buyer.” The new owner has other class C assets in the Valley.

To finance the deal at a 70% loan-to-value ratio, the buyer obtained a three-year loan at a 6.15% fixed-rate interest with a 30-year amortization through Marcus & Millichap Capital Corp. The 1.3-acre asset has units measuring 953 sf that rent for $575 per month.

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
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

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 © 2024 ALM Global, LLC. All Rights Reserved.