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TEMPE, AZ-A Brooklyn-based buyer has closed on the class B, 137-unit Villas Apartments, paying $15.15 million and starting the value-add play at a 6% cap rate. The acquisition is the buyer’s second class B pickup in two weeks.

“Historically, the buyer had class C properties and they’re looking to upgrade their portfolio,” says Alon Shnitzer, senior associate in Phoenix for Marcus & Millichap Real Estate Investment Services and a director of its national multi-housing group. He represented Rebecca Realty in its acquisition of the 99%-leased complex at 1718 S. Jentilly Lane.

Shnitzer says the seller of record, NuVida 1 LLC from Del Mar, CA, put the 40-year-old complex on the market because its partners wanted to exchange into something else either locally or Southern California. Ric Holway, Marcus & Millichap’s senior investment associate and a senior director of the multi-housing group, represented the seller.

Shnitzer says the property’s appeal is its cash flow and potential returns after it’s upgraded. “He liked the appeal of the price point as well as the value-add play he sees in it,” Shnitzer tells GlobeSt.com about the buyer. “You can’t buy buildings in New York of this size and quality for this price at all.”

Rebecca Realty recently bought the 288-unit Waterfront Apartments at 11459 N. 28th Dr. in Phoenix. “He’s looking for properties in markets that are growing. Phoenix is still on his radar screen,” he adds.

The Villas Apartments, situated on 4.25 acres, has one-, two- and three-bedroom units, ranging from 740 sf to 1,250 sf. Rents start at $695 and tick up to $1,045 per month.

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