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AVONDALE, AZ-The certainty of obtaining financing helped a Monterey, CA investor win the 150-unit Mountain View Apartments from a private seller based in Peoria, AZ. The buyer paid $10.5 million for the class B asset, which had a 6.4% cap rate.

According to Bobby Bull, VP with Transwestern’s Phoenix office, buyer Satkirtan Khalsa already owns property in the area and had the funds readily available for Mountain View, which is at 333 E. Van Buren St. Bull, who represented seller Zacharia Oprea. says Khalsa acquired the asset with help from a 10-year Freddie Mac loan that had a 5.86% interest rate and 76% LTV.

“The buyer won’t need to do a full rehab,” Bull says. “The property’s already in good condition and is very well-maintained.” He points out that the 24-year-old asset is 93% occupied. “They don’t do any advertising, but it’s stable,” Bull comments, adding that the buyer plans to keep the onsite staff in place.

Situated on 4.6 acres, the 15-building Mountain View Apartments has studios, one- and two-bedroom units. Sizes range from 352 sf to 825 sf, and monthly rents are between $496 and $725.

The seller, who bought the asset in August 2004 for $5.1 million, wants to redeploy his capital into other areas, Bull says. “He wants to invest in other opportunities and felt like the timing was right to move out of this one,” Bull says. He tells GlobeSt.com that Oprea is exchanging out of Mountain View into another investment, but declined to discuss specifics of the exchange.

Matt Lockin, Transwestern senior associate, worked with Bull on behalf of the seller. Art Rubi with Rubi Services LLC in Phoenix represented the buyer. Marco Louis, VP with NorthMarq Capital Inc.’s Phoenix office, helped secure financing for the buyer.

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