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PHOENIX-A Tustin, CA-based buyer has closed on the 96-unit Villas at Lone Cactus six months after it fell out of escrow with another buyer. The winning bidder has paid $9.6 million for the four-year-old complex.

The acquisition is Promenade Landing LP’s first in the area. Mark Forrester, a partner of Phoenix-based Hendricks & Partners, says the buyer beat nine other offers for the class A complex at 21220 N. 23rd Ave. “He made a strong offer and had the perseverance to go through the process,” says Forrester, who represented the seller, Villas at Lone Cactus LLC from nearby Scottsdale.

The class A complex came to market in late spring 2007. Forrester tells GlobeSt.com that the seller had planned all along to dispose of the asset after it was completed. The 90%-leased complex went under contract and into escrow just as the credit markets crumbled. “He couldn’t get the financing so we reintroduced it in the summer,” Forrester explains.

Promenade Landing placed its bid last fall, but the holidays and lending markets pushed the closing date well beyond the first of the year. Greystar Management’s Phoenix office is managing the complex.

“Over time, I’d imagine the buyer will increase rents,” Forrester predicts, “but probably not now. No one is planning huge rent increases in Phoenix these days.” Villas at Lone Cactus has only two-bedroom/two-bathroom units, each 1,065 sf. Monthly rents average $900 per unit.

Meanwhile, the seller has two more multifamily projects under construction. Forrester says there are no immediate plans to put them on the market.

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