X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(Read more on the multifamily market.)

MESA, AZ-A Salt Lake City-based developer has re-entered the market nearly 25 years after leaving it. The buyer, paying $31.5 million, plans a condo conversion for the 402-unit Falcon Glen Apartments.

The acquisition is Carlsbad Development LLC’s first since the 1980s when they’d developed and sold two properties in Mesa. The company was willing to acquire Falcon Glen at 4225 E. University Dr. as a conversion opportunity from IDB Investments LLC of Santa Barbara, CA because of its architectural style.

“This is very low density, 16 units per acre,” says Julie Vaughn, senior vice president with Sperry Van Ness in Phoenix, who represented the buyer. She adds that Falcon Glen units are townhouses, which is why it should do well for sales despite the slowing conversion market. “They can be sold as townhomes rather than as apartments,” she explains.

Vaughn tells GlobeSt.com that Carlsbad will invest $15,000 to $25,000 per unit into the conversion, with price points averaging $150,000. She says the current game plan calls for units to be ready for sale within six months.

The complex was 90% occupied at sale time. Local brokers Doug Lazovick with ICC Real Estate and Neil Sherman of Axxiom Partners represented the seller.

Carlsbad is looking for other acquisition opportunities in the area, but Vaughn acknowledges there are no other contracts in hand. “This is a pretty large property. They’ll need to complete this one first before they do anything else,” she says.

Situated on 24.8 acres, the 40-building Falcon Glen Apartments has one- and two-bedroom units ranging from 617 sf to 919 sf. Rents are $540 to $625.

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
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

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 © 2021 ALM Media Properties, LLC. All Rights Reserved.