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AVONDALE, AZ-In an off-market deal, PEM Real Estate Group LLC has picked up another 251 class A units in the West Valley, where it has 1,000 apartments in hand or under contract. The two-year-old Club at Coldwater Springs has traded for $33.6 million or $133,864 per unit.

The Scottsdale-based PEM bought the 21-building complex from Jan Storey of Chatwood Management in Denver, who had laid claim to it as it was rising on the 14-acre tract a 105 N. Links Dr. “We targeted the building as one that the buyer wanted to pursuer and the seller was willing to entertain our offer,” says Steven Nicoluzakis, senior vice president with Phoenix-based Grubb & Ellis/BRE Commercial LLC.

Nicoluzakis says the buyer’s upside for the 92%-leased complex is location: near Interstate 10 in a fast-growing, high-growth pocket of residential and retail. “It’s a path of growth location,” says Nicoluzakis, who teamed with Grubb & Ellis senior vice president David Fogler on the buy side. Storey used Chris Fontane of Fuller Real Estate Co. in Denver, the same broker who handled her $25.7-million acquisition in November 2004.

Nicoluzakis tells GlobeSt.com that PEM, which will lease and manage the prize, assumed below-market financing with Cleveland-based KeyBank to make the close. Start to finish, the deal took four months to bed down. “It was very smooth,” Nicoluzakis says. “And, he bought, in my opinion, below current replacement cost.”

The Club at Coldwater Springs has one-, two- and three-bedroom units in two-story buildings. Units average 966 sf; rents average $950 per month. “It’s a class A,” Nicoluzakis stresses, adding PEM’s hold will be purely market-driven.

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