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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.

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