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SCOTTSDALE, AZ-A Scottsdale developer and investor has claimed the 230-unit McCormick Place North and South for $21.85 million. The new owner plans to upgrade and lease up the 60%-occupied class B complex.

Eric Inabinet, principal with Capital Advisory Group LC of Phoenix, says the Phoenix-based private owner had the 1970s apartment complex for many years, and most likely kept occupancy low because of an intent to convert the units to condominiums. Inabinet, who arranged for acquisition financing on the project, says the buyer, Cal DeSouza, also is a condo converter, but that’s not the fate for the complex at 8250 N. Via Paseo del Norte.

“This is a value-add play,” Inabinet tells GlobeSt.com. “This is a rehab opportunity for them. They’ll make their upgrades over the next 12 months and get it leased and stabilized.” Getting the property leased up shouldn’t be a problem, Inabinet adds, because it’s in McCormick Ranch, a solid infill location.

To fund the acquisition and upgrade costs Capital Advisory Group arranged for a bridge loan from Wrightwood Capital LLC of Chicago and sourced a mezzanine loan from a local company. “Surprisingly, it wasn’t a tough deal to place,” Inabinet says. “We had three or four lenders interested. Everyone perceived this to be a good play with a good price and a good sponsor.”

Situated on 12.3 acres, the 17-building McCormick Place North and South has a mix of studio apartments and one- and two-bedroom units. Units range from 624 sf to 1,275 sf, with rents between $700 and $1,250 per month. Gregory F. Thielen and Brent Long with Phoenix-based Hendricks & Partners brokered the transaction.

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