(Read more on the multifamily market.)

MESA, AZ-Property Growth Fund has made its second buy in the city in 18 months, plunking down $11.85 million for the 132-unit Lindsay Palms. The deal builds in economies of scale for the Beverly Hills, CA-based fund.

Chuck LaBenz, associate partner with Hendricks & Partners’ Phoenix office, says it made good sense from an economic sense for Property Growth Fund to acquire the 2855 E. Broadway Rd. asset because it sits about five miles from the earlier buy, the 224-unit Monterey Point Apartments at 510 S. Extension Rd. The fund plans to manage both assets from the Monterey Point office.

LaBenz represented the seller, Signature-Lindsay Palms LLC of Longmont, CO. He tells GlobeSt.com that the seller had received many offers in the two weeks that the asset was on the market. The deal, however, remained in escrow several months because it took some time for the loan to close. However, he says “the buyer’s timing was fast, his due diligence was short and the seller liked that.”

LaBenz stresses that the seller also liked that the buyer was able and willing to move quickly. “During July and August when this was under contract, it seemed as though the world was coming to an end with the credit crisis,” he explains. “Moving quickly was very important. This guy did everything he said he would and did it in a timely fashion.”

Built in 1998, the 98%-leased Lindsay Palms sits on 6.1 acres. The two- and three-story buildings have one-, two- and three-bedroom units, ranging from 660 sf to 1,426 sf. Monthly rents are $660 to $1,045. As part of the takeover, LaBenz says the new owner plans to paint the complex and make some upgrades.

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