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SCOTTSDALE, AZ-Nevins Adams Lewbel Schell has added another class A product to its growing portfolio with the acquisition of the 316-unit San Tropez apartments. The local buyer shelled out $29 million per unit to the seller, an affiliate of Equity Residential in Chicago.

Mike Schell, principal with NALS says approximately $750,000 worth of renovations are planned for the class B complex at 2600 Hayden Rd. Upgrades will soon begin on the common areas, clubhouse, pool area and leasing center.

“The location is very strong, central Scottsdale, located off the (Loop) 101,” Schell tells GlobeSt.com. Furthermore, the 93%-occupied asset was built in 1989 by Mark Taylor, known as a quality area developer. Tyler Anderson and Sean Cunningham with CB Richard Ellis’ Phoenix office were the brokers of record for the seller. NALS was self-represented.

Schell acknowledges he and partner Harry Nevins would like to acquire more product similar to the San Tropez and to the 308-unit Sage Stone at Arrowhead in Glendale, AZ, which NALS acquired last spring. Schell says, however, that finding quality multifamily assets in the Phoenix area or anywhere else in the United States is difficult.

“There are few quality deals being offered on the market these days. I do have two additional deals under agreement in the northwest United States, so they’re out there. But our pipeline is not full,” Schell remarks.

He goes on to say that the reason so little quality product is making it to the market is because of the strong recovery anticipated, beginning in mid-2011. Investors believe if they hold onto the assets for another year, things will turn around. Added to that, lenders are giving a lot of forbearance these days.

“It’s surprising us how much forbearance is being granted to borrowers, because lenders don’t want to own,” Schell adds. “The pipeline for quality assets is as small as we’ve seen it in many years.”

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