Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(Read more on the multifamily market.)

MESA, AZ-A year and a half after acquiring Augusta Ranch, the Prime Group has abandoned a plan to convert the 238-unit class A complex and sold it to Fairfield Residential LLC for $31.7 million. The San Diego-based buyer plans to keep the asset as a long-term hold.

Tyler Anderson, first vice chairman in Phoenix for CB Richard Ellis Inc., the Chicago-based seller funneled $1.5 million into the six-year-old complex at 9335 E. Baseline Rd. before deciding to retreat on the plan. “There isn’t much of a conversion market in that part of town,” explains Anderson, who teamed with CBRE’s first vice chairman Sean Cunningham and first vice president Jack Hannum to represent the seller.

“Prime’s business plan was for conversion and rental operations didn’t fit in with their business plan,” Anderson tells GlobeSt.com. “So, they decided to sell.” Prime Group acquired Augusta Ranch in late 2005 for $24.85 million from a local developer.

Anderson says the 30-day marketing period attracted six offers, with Fairfield beating the competition with its track record and price. “I think this is more of a core asset for them rather than a value-add asset for them,” Anderson says. “It’s a tremendous property for them.”

Anderson adds Augusta Ranch was 74% occupied at the time of sale, but it’s leasing up well under Fairfield’s rule. The mix of one-, two- and three-bedroom units, with 797 sf to 1,322 sf, rent for $840 to $1,215 per month. The complex is situated on 15.62 acres, three miles from the just-opened, 630,000-sf Superstition Gateway and just south of US Hwy. 60 and Loop 202.

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

*May exclude premium content
Already have an account?


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 © 2020 ALM Media Properties, LLC. All Rights Reserved.