(Read more on the multifamily market.)

TEMPE, AZ-Following a $1.6-million renovation, an affiliate of Fairfield Residential LLC has sold the 376-unit Flagstone Apartments to another San Diego company. The seller beat nine bids with its track record and $35-million offer for the class B complex.

“The buyer’s offer was the best, not by a wide margin, but a small one. But, this was a proven buyer who had bought other things in town,” says Mark Forrester with Hendricks & Partners’ Phoenix office. The buyer of the 30 W. Carter Dr. property is Redhill Realty Investors LP.

“I think the buyer sees an ability to take it to the next level, especially if they do more interior improvements,” Forrester says. The complex was developed in 1985.

Forrester says when the Fairfield affiliate acquired Flagstone Apartments two years ago that it needed major repairs. But, the Fairfield team put considerable investment and time into the renovation, moved up the rents and increased the asset’s value. While Fairfield’s MO is to buy, reposition and sell, Forrester says the numbers moved faster than usual on Flagstone. “They accelerated the time for sale, but we got the same number they were anticipating getting a little later in the investment cycle,” he tells GlobeSt.com.

Situated on 17.25 acres, the 95%-occupied Flagstone Apartments consists of one- and two-story buildings with studio, one- and two-bedroom apartments. The monthly rents range from $562 to $889. The project also has extra open land for a 12- to 20-unit addition. Hendricks & Partners’ Bob Bruno worked with Forrester on the transaction.

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