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TEMPE, AZ-A little more than two years after acquiring the 515-unit Saddle Club Apartments, Bethany Group LLC sold the class B complex to a value-add buyer from the northwest. The stabilized asset traded hands for $41.2 million.

“Bethany completed its business plan on Saddle Club. They bought it, they did a lot of work to it, did a terrific job of stabilizing it, then put it on the market,” says Cindy Cooke, senior vice president with Colliers International’s Phoenix office, who represented the seller. The Irvine, CA-based Bethany acquired Saddle Club at 3730 S. Mill Ave. in May 2005 for $26.9 million.

Cooke tells GlobeSt.com that the buyer was no stranger to the Phoenix market, as the company already had local holdings. This was one reason why it beat out the handful of other offers for the complex. Furthermore, in addition to moving quickly on the deal, “I had confidence in the buyer’s ability to place the debt, because of its connection with Fannie Mae and Freddie Mac and the past track records with them,” Cooke comments. “That was obviously important in today’s market.”

Cooke says that the new owner, which was self-represented in the transaction, will make more improvements on the asset, which sits on 26 acres. Improvements will include development of a fitness center, upgrading the club house and interior and exterior renovations. “This showed very well; Bethany brought the asset up to a good standard,” Cooke adds. “But the buyer has a larger vision for this property.”

Built in 1970, Saddle Club Apartments is 98% occupied, with no concessions. The unit mix consists of a three-bedroom apartment, studio apartments, and one- and two-bedroom apartments. Unit sizes are from 375 sf to 1,296 sf, with the average rent at $845 per month. Brad Cooke, vice president and Carrie Burton, marketing coordinator with Colliers’ Phoenix office teamed with Cooke on behalf of Bethany Group. The buyer was self-represented.

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