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-A Carmichael, CA investor has outplayed nine other bidders by meeting the $6.3-million ask for the 137-unit Carob Tree Apartments. The buyer has used 1031 exchange funds from a June sale to make the close.

Dick James & Associates bought the class B Carob Tree, built in 1978 at 9202 N. 19th Ave., with proceeds from the $9.2-million sale of the 106-unit Biltmore Palms at 2625 E. Indian School Rd. According to Todd Braun, senior director with Cushman & Wakefield of Arizona Inc. in Phoenix, the buyer won out because of his exchange status.

“He’s had a presence in this geographical location and we’ve had previous experience in working with him,” Braun says. “We felt for those reasons he was a good candidate to bring the deal to fruition.” He and colleague Brett Polachek negotiated the transaction for buyer and seller, Realvest Carob Tree LLC/Envoy, LLC of Vancouver, WA.

The seller owned Carob Tree Apartments for 10 years. “It was their only asset in Phoenix and it just wasn’t cost-effective to manage that size of a building,” Braun tells GlobeSt.com, adding the new owner will self-manage the complex.

Braun believes the Carob Tree listing attracted strong interest from investors because of its per-unit price, stable operating record with a 96% occupancy and a strong submarket. It also was in good shape despite its age. “There won’t be anything significant in terms of upgrades. I think they’ll try to create value through management,” Braun adds.

Carob Tree Apartments has a mix of studios and one- and two-bedroom units. The apartments range from 416 sf to 874 sf; rents go from $445 to $685 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
  • 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.