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PHOENIX-A San Francisco-based investment group, marking its second buy in the region, has purchased the 208-unit Adagio Apartments for $16.9 million or $81,250 per unit.

Hamilton Zanze & Co. won the deal in a 30-day marketing round. Seller Continental Realty Advisors of Littleton, CO was seeking $17 million for the 10-year-old development at 15645 N. 35th Ave. “We received eight to 10 offers, with some of those offers going above the list price,” says Brad Goff, principal with ARA Realty Advisors’ Phoenix office. But, he adds, the ability to close was a huge priority with Continental Realty Advisors, which was why Hamilton Zanze was selected. “They had a short review period, a great track record in Phoenix and a demonstrated ability to close,” the seller’s broker says. Last year, Hamilton Zanze bought the 380-unit Ridge at 15202 N. 40th St., also in Phoenix.

Goff tells GlobeSt.com that the 96%-occupied complex was a “test drive” for the seller, which had purchased Adagio in 2004 for $13 million to demonstrate to potential partners and investors that it could buy, hold and sell a property in the marketplace within a reasonable time frame. “They’ve proven themselves and now they’re aggressively looking in Phoenix and other markets for other properties,” Goff says.

Continental Realty’s prefers 1990s-era multifamily properties, with value-add potential for a long-term hold. Adagio was an anomaly for the seller because the hold was less than three years. “This is one of the nicest prices per unit in the marketplace,” Goff says. “It was a nice value play for Hamilton Zanze.”

The one-, two- and three-bedroom floor plans range from 615 sf to 1,189 sf. The monthly rents go from $610 to $728.

Hamilton Zanze was self-represented in the transaction. The ARA team included Bret Zinn, Karyn McClintock and Stephanie Blackwell.

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