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MESA, AZ-In an effort to move capital into newer properties, a California investor has shed the 156-unit Woodstream Villas Apartments, collecting $13.75 million for his efforts. The seller had acquired the class B asset 10 years ago for $6.5 million.

“The market was hot, his loan was maturing and he wants to put younger properties into his portfolio. He isn’t looking at anything older than 1995,” says Bret Zinn, vice president of the Phoenix office of Apartment Realty Advisors. He says the seller, NMS Property Services Corp. of Woodland Hills, is looking in Texas to exchange funds gained from the sale of the 1230 N. Mesa Dr. property.

Zinn tells GlobeSt.com that the six-week marketing period for the 93%-leased complex attracted eight offers, with Acacia Capital Corp. of San Mateo, CA stepping up with the best price and terms, a great track record and an ability to close. He says the new owner will upgrade the complex by adding washers and dryers, replacing the carpeting and painting the exteriors. “The bones of the property are great and the unit mix is great. It’s all there and upgrading will provide a great upside,” Zinn adds.

Situated on 7.5 acres, the 1982-built Woodstream Villas Apartments has one- and two-bedroom units measuring from 750 sf to 1,000 sf. The monthly rent is $608 for one-bedroom apartments and $713 for two-bedroom units. Zinn says the rates are $50 to $75 below market rate. And, he says, Acacia most likely will increase rents once upgrades are completed.

AMC Management of Utah will lease and manage the property for Acacia, which was self-represented in the transaction. ARA’s principal Brad Goff and transaction manager Stephanie Blackwell teamed with Zinn to represent the seller.

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