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MESA, AZ-Ennabe Properties beat out 21 offers to acquire the 256-unit La Mesa Village Apartments from foreclosure. The Los Angeles buyer paid $5 million for the 1980s property, closing escrow in a week.

Marcus & Millichap associate vice president Alon Shnitzer acknowledges that Ennabe’s ability to close quickly and willingness to pay cash put it ahead of the other bidders for the asset at 655 S. Mesa Dr. Shnitzer, who represented the agency seller in the transaction, adds that the buyer also put down a significant deposit and showed proof of funds. In short, “they were great buyers,” Shnitzer tells GlobeSt.com.

Though the price per unit was low, Shnitzer says Ennabe didn’t get away with a steal. He explains that occupancy was 50% at closing and a negative NOI at close of escrow. “They’ll have to do a little work to get it operating again,” he comments.But Nancy Ennabe who works with Ennabe Properties says the new owner is up to the challenge. A lot of upgrades are planned for La Mesa Village to get it into shape. “We saw this property had a lot of potential,” Ennabe remarks. Ennabe Properties will take over management duties from current property manager 707 Management Services Inc. Ennabe tells GlobeSt.com that Ennabe Properties is looking for similar multifamily properties in the Phoenix area, preferably buildings no older than the 1980s, and that have value-add potential.

Shnitzer says the majority of offers came from private individuals and syndicates from California. The bidding pool also included potential buyers from Utah, Illinois and New York, as well as two from Arizona.

La Mesa Village belonged to SRS Properties Inc. in Los Angeles before falling into foreclosure earlier this year due to decreasing occupancy and dwindling cash flow. At one point, occupancy was in the mid-30s.

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