X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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

PHOENIX-Nearly 1.5 years after acquiring the Monterra Apartments for $18.13 million, the Seattle-based S-J Management LLC has sold the 258-unit luxury complex for $22.07 million to an Irvine, CA investor. Plans call for the buyer, Aslan Monterra I & II, to keep the complex for the long term.

“They were exchange buyers who had the funds available,” says David Fogler, senior vice president with Grubb & Ellis/BRE LLC’s Phoenix office. “They’d acquired another property not too far from this one, in an adjoining submarket. We thought they knew the market and submarket very well.” Monterra’s buyer used in-house brokers to negotiate the 1333 N. 24th St. take-over with Fogler and Grubb & Ellis’ senior associate Steven Nicoluzakis.

The transaction represents S-J’s final disposition of any area assets for the time being, but not its appetite to buy. As previously reported by GlobeSt.com, S-J has just closed on the $33-million acquisition of the 272-unit San Ventura Apartments at 3600 W. Ray Rd. in Chandler. Additional closings are scheduled for the coming weeks.

Fogler tells GlobeSt.com that S-J Management acquired the Monterra as a short-term investment not too long after it was completed. “There wasn’t much to do with it other than get it leased up,” says Fogler, who notes that occupancy has reached 96%.

The complex had been on the market only a handful of weeks, but attracted a plethora of buyers of all types. “We had dozens of interested parties looking at this,” Fogler says. “We had some converters, some TIC buyers and exchange buyers–an exchange buyer ended up buying it.”

Fogler says the buyer assumed a $14.5-million loan balance. The fixed-rate financing, locked at 5.75%, has interest-only payments through December 2007 and subsequent payments based on 30-year amortization, according to the dealmaker.

Completed in 2001, the class A Monterra has studios and one-, two- and three-bedroom units of 475 sf to 1,101 sf. Monthly rents go from $659 to $1,049. “The buyer’s initial plan is to keep this as a rental,” Fogler says. “But beyond that, we really don’t know.”

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. Apartments 2020Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

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.