- Devonshire Place and Sun Valley Apartments sold for $14 million
A large Birmingham apartment property has been sold.
Devonshire Place and Sun Valley Apartments, a 332-unit multifamily property located near the Center Point area, was sold to New York investor Devonshire Apartments AL LLC, according to a release from Birmingham's Berkadia office.
Berkadia Managing Director David Oakley and investment sales associate Josh Jacobs negotiated the $14 million sale at $42,500 per unit at the 2349 8th Street NW location.
Devonshire Place and Sun Valley was built in phases that ranged from 1971 to 1974 and is composed of around 346,260 square feet on 19.76 acres of land. The property contains garden-style units ranging from one-to-three-bedroom floor plans.
The property is located near Jefferson State Community College in Birmingham's northwest corridor near Pinson and Center Point. [Birmingham Business Journal]
- This Week's LA Deal Sheet - Sales
Berkadia's Dean Zander, Vince Norris and Mark Ventre closed the $26.2M sale of J Grant, a newly completed, 50-unit mixed-use property in Downtown Pasadena. The project (119 S Los Robles), which includes a ground-floor commercial space, was purchased vacant by a private investor. The seller, a local Pasadena developer, built the property to luxury condo specs, intending to sell off the individual units. With the strength of the multifamily investment market, the desirable location and limited new supply, the buyer plans to operate the J Grant as luxury rental apartments. The property is just a few blocks from Old Pasadena and the Playhouse District, and minutes from the Gold Line as well as the 210, 110 and 134 freeways. [Real Estate Bisnow]
- Two Multifamily Communities in Phoenix Find New Landlords
Two multifamily properties in Phoenix have found new owners with the help of Berkadia, which recently announced the disposition of The Villages at Metro Center and Oakridge Apartments.
Located at 3106 West Vogel Ave. in Phoenix, the 290-unit Villages at Metro Center complex was sold for $19 million. The community was developed in 1979 and features studio, one-, two-, and three-bedroom apartments. Its amenity package includes four swimming pools, a Jacuzzi and sauna, barbeques, tennis courts and a fitness center. The buyer was Covina Court, LLC of Long Beach, Calif.
The second apartment complex is a 282-unit community located at 3330 West Greenway Road. It features studio, one- and two-bedroom floorplans. Amenities include a swimming pool, spa, clubhouse, and barbeques. WWC Holdings, LLC of Scottsdale, Ariz. paid $17 million to acquire the asset.
The two deals were arranged by Senior Managing Director Mark Forrester and Managing Director Ric Holway, both with Berkadia.
"Steady job growth and rising income levels are driving increasing multifamily demand in the Phoenix market," Forrester said in a prepared statement. "Our team marshaled our significant regional experience and market expertise to close these deals at competitive price." [Commercial Property Executive]
- Berkadia closes four recent multifamily sales in Tennessee, Michigan and Missouri
Berkadia's Affordable Housing Group negotiated four sales totaling more than $30 million for four affordable-housing properties in Tennessee, Michigan and Missouri.
Senior directors Eric Taylor of the Detroit office and managing director Aaron Hargrove of the Oklahoma City office closed the $11.3 million sale of King's Crossing and Tara's Place apartments, located at 1710 E. Northfield Blvd. in Murfreesboro, Tennessee.
Built in 1995, the 184-unit property features one-, two- and three-bedroom floor plans. Unit amenities include fully equipped kitchens, and select units offer washer and dryer connections. Community amenities include a swimming pool, clubhouse and laundry facility. The property is located three miles from downtown Murfreesboro and less than three miles from Middle Tennessee State University.
Taylor and Hargrove negotiated the $10.95 million sale of Waterview Apartments, located at 1300 Waterview Circle in Hendersonville, Tennessee. The 160-unit property offers two- and three-bedroom floor plans, and unit amenities include fully equipped kitchens, as well as washer and dryer connections. Community amenities include a sand volleyball court, clubhouse and laundry facility. The property, which was built in 1995, is located near Anchor High Marina and The Streets of Indian Lake.
The buyer of both properties was Dominium of Plymouth, Minnesota, and the seller and original developer of both properties was T&R Properties of Columbus, Ohio.
Earlier this summer, Taylor, Hargrove, senior director David Walstrom and director Jason Krug of the Detroit office negotiated $4.25 million for the sale of Arbor Crossings, located at 834 Sheridan Road in Muskegon Township, Michigan. The buyer was Read Property Group of New York, and the seller was Sterling Group, Inc. of Mishawaka, Indiana. The 18-unit property offers one-, two- and three-bedroom floor plans. Unit amenities include patios or decks, fully equipped kitchens, pantry storage and ceiling fans. Community amenities include a swimming pool, sundeck, clubhouse and playground. Built in 1995, the property is less than four miles from downtown Muskegon and less than two miles from Muskegon Community College.
Additionally, Taylor, Hargrove and senior director Phillip Brimble of the Kansas City office brokered the sale of Northeast View Apartments, located at 222 Garfield Avenue in Kansas City, Missouri. The buyer was Trinity-Northeast View, LLC of Chicago, and the buyer was Kci-Northeast View, LLC of Coronado, California. Built in 1972, the 137-unit property features one-, two- and three-bedroom floor plans. Unit amenities include spacious layouts and brick exteriors, while community amenities include quiet areas and convenient access to public transportation. The property is less than three miles from LEGOLAND Discovery Center and two miles from downtown Kansas City. [Midwest Real Estate News]
- Bascom Group Acquires 112-Unit Vintage Apartment Community in Downey, California
IRVINE, CA - The Bascom Group has acquired The Square Apartments, a 112-unit garden style apartment community located at 12517 Brookshire Avenue, Downey, California. The $25.5 million sale closed on July 14, 2015. This marks Bascom's 13th recent California acquisition. Shane Shafer and Adrienne Barr of Berkadia were the brokers for the sale. Brian Eisendrath, Brandon Smith and Annie Rice of CBRE Capital Markets arranged the $18.8 million loan with California Bank & Trust.
The community was built in 1965 and consists of 15 two-story buildings situated on 3.4 acres. Rental offerings include a range of one-bedroom through three-bedroom floor plans, with one-bedrooms accounting for 27% of the total units, two-bedroom and three-bedroom units accounting for 38% and 36% respectively. The Square offers an attractive floorplan mix coupled with large units. Bascom plans to implement a modest renovation program to update the property interiors and modernize the look of the exteriors.
Chad Sanderson, Principal for Bascom states, "The Square is a very well located property with access to strong job centers, schools, and numerous retailers. The area continues to gentrify as evidenced by the ongoing retail development projects along with the growing number of young professsionals and families relocating to the City of Downey."
Tim Whiting, Senior Vice President of Bascom, comments, "The property consists of a majority of two and three-bedroom floorplans. It is one of the few properties in the area that offers residents large floor plans with garages. This is an ideal property for families located within walking distance to neighborhood parks and quality schools." [Multifamily Biz]
- Burnside 26 Changes Hands
PORTLAND, OR-Berkadia has completed the sale of Burnside 26, a mixed-use property located in Portland. Managing director Phil Oester and director Joe Nydahl of the Portland office closed the $41.5 million sale on August 4. The sale price reflects a per-unit price of $307,407.
The buyer was an institutional investor. The seller was a joint venture of Capstone Partners and Green Light Development, both of Portland, and Premium Property USA, a subsidiary of Zurich-based MIAG Mutschler Immobilien AG.
"This was a diverse ownership group that really understood what renters were looking for. It’s an excellent design," stated Nydahl.
Developed in 2014 by the seller, Burnside 26 is currently 99% occupied. The 135-unit property offers studio, one- and two-bedroom floor plans. Unit amenities include fully equipped kitchens with stainless-steel Energy Star appliances, custom-built cabinetry and woodwork, oversized windows with a shade system, and nine- to eleven-foot ceilings. Select units feature walk-in closets, patios, built-in storage and bike hooks. Community amenities include a rooftop lounge with a fully equipped kitchen, barbeque area, outdoor fireplace and herb garden; a lobby lounge with a computer station, resident kegerator and fireplace with seating; and a bike room with Dero bike racks, commuter lockers and a fix-it repair station.
Located at 2625 E. Burnside St. next to the historic Laurelhurst Theater, Burnside 26 is near Interstates 84 and 5 on Portland's Inner Eastside. The property is within walking distance of Portland's top dining and retail locations, as well as two blocks from Whole Foods Market and Starbucks. Top employers in the immediate area include Providence Portland Medical Center, Kaiser Permanente Northwest, City of Portland, Oregon Health and Science University and Portland State University.
"Portland has some of the best multifamily metrics in the nation. This property is strategically located in Portland's inner eastside, a submarket that is experiencing incredible demand," added Nydahl.
Metrowide vacancy in the Portland metro descended to 3.5%. At the halfway point in 2015, the average asking rent increased 9.1% year over year to an average of $1,250 per month.
Berkadia, a joint venture of Berkshire Hathaway and Leucadia National Corporation, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia is among the largest, highest rated and most respected primary, master and special servicers in the industry. [GlobeSt]
- Bascom Scores Mixed-Use Asset
Irvine, Calif.-The Bascom Group has secured Southtown at Main Apartments in Santa Ana, Calif. for $8.5 million. The transaction was brokered by Peter Hauser and Shane Shafer of Berkadia, and financed with a new loan from CTBC Bank.
"We acquired a unique, Orange County apartment building at a great basis that is positioned well to compete with newer product after renovations," said James D'Argenio, principal for Bascom.
The 44-unit apartment community was constructed in 1988, and has added value with four retail tenant spaces that total 6,759 square feet. Southtown at Main is a four-story building which houses a unit mix composed of 9 percent studios, 57 percent one-bedroom units and 34 percent two-bedroom units. All apartments have fully equipped kitchens and patios or balconies.
Lee Nguyen, senior vice president for Bascom, commented, "The Santa Ana submarket is transforming and providing an Orange County urban living option for young professionals. Bascom will focus renovation capital primarily on interiors and cosmetic exterior upgrades."
The property is situated conveniently in central Santa Ana, making it an attractive prospect for young professionals working in the area. Its location 1.5 miles from the 55 freeway makes it easy for residents to get around all of Orange County. [Multi-Housing News]
- People on the Move - Judy MacManus
Berkadia announces the hiring of Judy MacManus as Senior Director, who will be joining the Atlanta office, continuing the firm’s expansion in the Southeast. MacManus will leverage Berkadia’s national network of multifamily advisors & mortgage bankers to help serve her clients. [Atlanta Business Chronicle]
- Berkadia adds 12 new hires in Chicago, St. Louis and Kansas City
Berkadia expanded its multifamily investment sales team with 12 new hires across the Midwest. The new additions all joined the company from Marcus & Millichap, and include nine multifamily investment sales advisors and three supporting team members.
The new members will be located in Berkadia's Chicago, St. Louis and Kansas City, Missouri, offices. During the last 12 months, the team has closed 31 transactions totaling more than $300 million.
Senior directors David Gaines and Alex Blagojevich, along with director Michael Sullivan, are the leaders of the coordinated team. [Midwest Real Estate News]
- Multifamily Asset Trades Hands for Price that's Smaller than You Think
As rents rise and vacancies compress in the city's core, investors are rushing to place capital on the market as quickly as possible. Westlake Village, CA-based BR Workforce recently completed the purchase of a multifamily property on Washington Boulevard. The company paid seller DIG Kelsey Residences of Laguna Beach a total of $13.1 million for the community known as The Kelsey. The transaction was arranged by Berkadia Managing Director Brent Sprenkle.
The Kelsey is located at 1408 West Washington Blvd, offering easy access to Interstate Routes 10 and 110. The multifamily asset also offers proximity to DTLA, as well as the Walt Disney Concert Hall, while major employers in the area include University of Southern California, USC Medical Center and Kaiser Permanente. Completed in 2012, The Kelsey offers 41 residential units featuring high ceilings, granite countertops and stainless steel appliances. The resident amenity package at the property is comprised of a recreation and entertainment room, as well as two levels of secured subterranean parking.
Although trading at a per-unit price of around $320,000, the asset is considered a strong investment opportunity given the current makeup of the Los Angeles West area. According to Brent Sprenkle, the market "has experienced healthy job growth and increased apartment demand over the last year, further enhancing the asset's appeal."
Although much higher than the average per-unit price in the Los Angeles metro, increased activity in the area and the asset's age should translate to a slightly higher price. Sprenkle also noted that that this situation "presented the buyer with a particularly attractive investment opportunity." [Commercial Property Executive]
- Berkadia Brokers Sale Of The Enclave
SAN ANTONIO--Berkadia has brokered the sale of The Enclave, a multifamily property located at 2555 N.E. Loop 410 in San Antonio. Managing director Mike Miller, director Chris Ross, associate director Will Caruth and junior associate Cody Courtney of the San Antonio office negotiated the sale, which closed on July 29.
The seller was PBC Acquisition Services LLC, a Phoenix-based company, and the buyer was an institutional investment fund from Salt Lake City.
"This institutional investment fund capitalized on a rare opportunity to acquire a large, class B asset in an emerging submarket with substantial rent growth potential," Caruth told GlobeSt.com. "Above-average historical occupancy at the property, combined with the demand for quality living, prompted new ownership to upgrade unit packages, allowing the new owner to capitalize on the strong momentum in the submarket."
Built in 1980, the 384-unit community is 97 percent occupied and features one- and two-bedroom floor plans. Unit amenities include fully equipped kitchens with electric appliances, pantries, walk-in closets, washer and dryer connections, outside storage and a patio or balcony. Select units also offer separate dining areas, fireplaces and upgraded flooring. Community amenities include a remodeled clubhouse, two pools, state-of-the-art fitness center, basketball and tennis courts, dog park, barbecue areas and full-service business center.
The Enclave, located near Loop 410 and Interstate 35, is situated five and a half miles from both the North Star Mall and the San Antonio International Airport. The area's top employers include Rackspace, the airport, Northeast Baptist Hospital and Fort Sam Houston.
Vacancy in the San Antonio metro area fell 70 basis points to 6.3 percent in the first quarter of 2015. Average asking rents appreciated 2.7 percent since the first quarter of 2014, reaching $885 in March of this year. [GlobeSt]
- Paramount Terrace in Paramount, CA Marketed by Berkadia's Ontario Office for $11.15M
Berkadia is pleased to announce the exclusive listing of Paramount Terrace, located at 13947 Paramount Boulevard in Paramount, CA. The asking price for the 48-unit apartment community is $11,150,000. The seller has engaged Alex Mogharebi and Otto Ozen of Berkadia's Ontario office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Riverfront Towers apartment complex up for sale
A luxury high-rise apartment complex that has been home to notables such as Rosa Parks, Coleman A. Young and Aretha Franklin is on the market.
Berkadia has listed Riverfront Towers for sale with no asking price.
"We let the market determine what the price is going to be," said Rick Vidrio, managing director of the Berkadia's Troy office. "Almost like an auction."
The property's two towers for sale, Tower 100 and Tower 200, feature a total of 557 units, a 77-slip marina and five-story parking deck. Tower 300, which contains condominiums, is not for sale.
The property on Riverfront Drive boasts "stunning panoramic views of international waters and bustling city scenes," according to the listing. The towers are within walking distance of Joe Louis Arena, Cobo Center and Hart Plaza. There is also a skywalk to the People Mover.
There has been a lot of interest in the property from all over the country, Vidrio said. Tours of the property are available for perspective buyers until the Aug. 11 deadline for offers.
Riverfront Tower Holdings LLC owns the property, which according to the listing, has undergone more than $4 million in improvements in the last three years. Among the improvements are renovations to the health club, office, lobby and interiors of the elevators. Parking lot renovations and roof replacement are also on the list.
Vidrio said there is potential for additional improvements that could command higher rents and profits for the future owner. Rents average $1.42 a square foot and range from $901 a month for a 553-square-foot one-bedroom, one-bathroom unit to around $3,000 a month for a 2,390-square-foot two-bedroom, three-bathroom unit, according to the complex's site.
Riverfront Towers is 98 percent occupied, Vidrio said.
The 26-story Tower 100 was built in 1992 and the 29-story Tower 200 was built in 1983.
In 2011, former owners New Jersey-based companies Empirian at Riverfront LLC and Aintsar Riverfront LLC defaulted on a $55 million mortgage. [The Detroit News]
- Cordaro of Berkadia's Louisiana Office Lists Biloxi Shores in Biloxi, MS
Berkadia is pleased to announce the exclusive listing of Biloxi Shores, a 128-unit apartment community, located at 263 Eisenhower Drive in Biloxi, MS. The seller has engaged Gregg Cordaro of Berkadia's Louisiana office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Multifamily Portfolio Trades for $47M
ORLANDO-Central Florida just saw a $47 million multifamily deal. Malabar Lakes, Grand Oaks at the Lake, and Park Village—three multifamily communities located in Palm Bay and Melbourne, FL, just traded hands.
Berkadia Group managing director Cole Whitaker and senior directors Hal Warren of the Orlando office, along with Jason Stanton of the Tampa office facilitated the sale. The multifamily communities $85,454 per unit.
"Strong regional job growth, prime locations and significant value-add potential are among the many factors that attracted the buyer to these communities," says Whitaker. Deancurt Melbourne of Agawam, MA acquired the multifamily assets from HC II Limited Partnership of Denver.
Built in 1988, Malabar Lakes is located at 1018 Malabar Lakes Drive Northeast in Palm Bay. The multifamily community is 98% occupied. Located at 325 Largo Circle in Melbourne, Grand Oaks at the Lake was built in 2000, and is also 98% occupied. Park Village, located at 3099 Park Village Way in Melbourne, was built in 1986 and is currently 97% percent occupied.
All three communities are located near Interstate 95 and fewer than seven miles from Melbourne International Airport and Melbourne Square Mall. Harris Corporation, Holmes Regional Medical Center, Northrop Grumman Aerospace, Port Canaveral, and Wuesthoff Health Systems are among the top employers in the immediate area. [GlobeSt]
- Investors Eye Smaller WA Markets
Investors want to be in Washington multifamily markets outside Seattle, and for good reason, Berkadia Seattle office senior managing partner Kenny Dudunakis tells us. The demand for apartments is widespread. Kenny, along with colleague Jim Jensen of the Tacoma office, negotiated the recent sale of Arbor Square, a multifamily property at 606 Lilly Rd NE in Olympia.
Hamilton Zanze of S.F. was the buyer; Missouri-based Bianco Properties was the seller. Kenny says the deal was an opportunity for both buyer and seller to capitalize on an active market. The buyer has invested in the Olympia area for more than 10 years, he adds, and it has plans to renovate the interior and exterior of the property for a long-term hold. [Real Estate Bisnow]
- Berkadia Sells Multifamily to San Francisco Firm
TACOMA, WA-Berkadia recently completed the sale of Lakeside Landing, a multifamily property located at 1414 South Mildred Street in Tacoma. Senior managing director Kenny Dudunakis of the Seattle office and senior director Jim Jensen of the Tacoma office facilitated the sale on July 15. The buyer was Hamilton Zanze & Company of San Francisco.
Built in 1969, the 450-unit property features one- and two-bedroom floor plans. Unit amenities include balconies or patios, vaulted ceilings, and cable and internet access. Community amenities include a swimming pool, Jacuzzi, laundry facility, clubhouse, fitness center, barbecues and a controlled-access gate. The property was 95% occupied at the time of sale.
"Tacoma has been a strong secondary market to date in 2015, and Hamilton Zanze & Company was looking for a property like Lakeside Landing that has strong value-add potential," Dudunakis said. Lakeside Landing, located near Washington State Route 16, is less than one mile from Tacoma Community College and approximately four miles from downtown Tacoma. The area's top employers are Multicare Health System, True Blue Inc., and St. Joseph Hospital & Medical Center. Seattle-Tacoma metro-wide vacancy reached 4.5% in the first quarter, 30 basis points lower than the close of 2014. Operators advanced rents 6.5% annually to $1,490 per month in March.
Berkadia, a joint venture of Berkshire Hathaway and Leucadia National Corporation, is an industry-leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. [GlobeSt]
- Berkadia Negotiates Multifamily Sale in Winnetka, CA - LA Deal Sheet
A 42-unit apartment building in Winnetka (20006 Roscoe Blvd) traded for just over $6M or $144k/unit. According to Berkadia's David Harrington, the buyer closed at the original offering price after a short contingency period. Built in 1963, the property is adjacent to Winnetka Avenue Elementary School. [Real Estate Bisnow]
- Berkshire Mortgage Venture Hires Team for Texas Apartment Deals
Berkadia Commercial Mortgage LLC , the joint venture of Berkshire Hathaway Inc. and Leucadia National Corp., hired a team from Marcus & Millichap Inc. to expand in Texas.
William Jarnagin, Michael Ware and Taylor Hill joined the firm as senior directors, Berkadia said Monday in a statement. The three previously worked at Marcus & Millichap's Dallas office, focusing on multifamily properties, and together completed sales covering more than 12,300 units, according to the statement.
"This group of professionals has worked together for many years and their track record speaks for itself," Brent Long, president of investment sales at Berkadia, said in the statement. "Their addition immediately broadens our expertise in the Texas market."
Berkadia is pursuing growth under Justin Wheeler, the former Leucadia manager who was named chief executive officer of the mortgage venture this year. Loan originations exceeded $13 billion last year at the operation, which expanded in the apartment market with the purchase in late 2012 of Hendricks & Partners.
A representative for Marcus & Millichap didn't immediately return a message seeking comment. [Bloomberg]
- Trio of Tucson Sales for Berkadia
TUCSON-Berkadia has closed on three multifamily properties in Tucson: Pantano Park, located at 200 S. Pantano Rd.; Woodridge, located at 8225 E. Speedway Blvd.; and El Conquistador, located at 1881 E. Irvington Rd. Senior managing director Art Wadlund and associate Clint Wadlund of the Tucson office negotiated the transactions.
Clint Wadlund tells GlobeSt.com, "Interest rates are creeping up a little bit, but there are some programs in place in that $7 million range that are helping with that. Overall the market is healthy. People are coming to Tucson chasing that yield. Of course we would like to see more job growth here-we're always looking for job growth. One great thing about Tucson is that it doesn't have the highs and lows like Phoenix; the market is less cyclical. People can come here and get that cash flow."
Pantano Park sold for $7.2 million. The sales price reflects a per-unit price of $53,015, or $71 per square foot. Associate Rick Salinas of Berkadia's San Francisco office arranged financing.
Built in 1981, the 136-unit property features one- and two-bedroom floor plans. Each unit features fully equipped kitchens, pantries, ceiling fans, vertical and mini-blinds, balcony or patio, storage, walk-in closets and cable/internet access. Select units have fireplaces. Community amenities include a clubhouse with kitchen and fireplace, heated swimming pool, spa, laundry facility, barbecue areas with grills and health club passes.
The community is located near Broadway Boulevard, providing residents access to the entire Tucson area. Pantano Park is two and a half miles from Park Place Mall and eight miles from University of Arizona. Top employers in the immediate area include Tucson Medical Center, St. Joseph's Hospital, Davis-Monthan Air Force Base and Honeywell. The seller was Roy and Sandy Uelner of Milwaukee. The buyer was Mark McMillin of San Diego. Metrowide apartment vacancy in Tucson fell 50 basis points year over year to 8% at the end of the first quarter of this year. Operators advanced rents 1.2% on average in the first quarter to $666 per month.
Woodridge sold for nearly $9.8 million. The sales price reflects a per-unit price of $47,794, or $83 per square foot. Built in 1981, the 204-unit property features one- and two-bedroom floor plans. Each unit features fully equipped kitchens, mini-blinds, balcony or patio, cable access and extra storage. Select units have ceiling fans, frost-free refrigerators, and walk-in closets. Community amenities include a clubhouse with a kitchen, high-speed internet, fitness center, heated swimming pool, spa, laundry facility and garage rentals.
The community is located on Speedway Boulevard, providing residents access to the entire Tucson area. Woodridge is four miles from Park Place Mall and eight miles from University of Arizona. Top employers in the immediate area include Tucson Medical Center, St. Joseph's Hospital, Davis-Monthan Air Force Base and Honeywell. The seller was HSL Properties of Tucson. The buyer was Charles Harris of San Diego.
El Conquistador sold for more than $4.5 million. The sales price reflects a per-unit price of $22,537, or $56 per square foot. Built in 1981, the 201-unit property features studio, one- and two-bedroom floor plans. Each unit features air conditioning, mini-blinds, walk-in closets, built-in dining room tables and cable access. Community amenities include a heated swimming pool, spa, gazebo, fitness center, laundry room with a television lounge, tennis, sand volleyball, racquetball and basketball courts, jogging track, shuffleboard and horseshoes.
The community is located on Irvington Road and near Campbell Avenue and Interstate 10, providing residents access to the entire Tucson area. El Conquistador is three miles from Tucson International Airport and five and a half miles from the Tucson Convention Center. Top employers in the immediate area include University of Arizona, Raytheon Missile Systems, Providence of Arizona Inc., and University Medical Center. The seller was Coordinated Partners Inc. of Salt Lake City. The buyer was Oksenholt Corporation of Lincoln City, OR. [GlobeSt]
- Berkadia Brokers $47M Sale of Multifamily Portfolio in Florida
PALM BAY AND MELBOURNE, FLA. - Berkadia has brokered the $47 million sale of a three-property multifamily portfolio in Palm Bay and Melbourne. Agawam, Mass.-based Deancurt Melbourne LLC purchased the portfolio from Denver-based HC II LP for roughly $85,454 per unit. Cole Whitaker, Hal Warren and Jason Stanton of Berkadia brokered the transaction. The three communities include the 112-unit Malabar Lakes in Palm Bay, the 300-unit Grand Oaks at the Lake in Melbourne and the 138-unit Park Village in Melbourne. [Real Estate Business Online]
- Three SoCal Multifamily Properties Trade
ONTARIO, CA—Berkadia has executed the sale of three multifamily properties located in Southern California's Inland Empire. Managing director Alex Mogharebi of the Ontario office completed the sales, which totaled $85 million. Highlights include:
Mogharebi negotiated $49.1 million for the sale of The Villages at Bonita Glen, located at 240, 250, 254 and 260 Bonita Glen Drive and 72 Sandalwood Drive in Chula Vista, California. The sale price reflects a per-unit price of $166,271. The buyer was RRE Bonita Glen Holdings, LLC of Philadelphia, and the seller, who had owned the property since 1997, was Granite Investment Group of Irvine, CA. Over a dozen offers were received for the property.
Built in two phases in 1970 and 1988, the 295-unit property consists of studio, one-, and two-bedroom layouts. More than 35 unique unit layouts are available. Unit amenities include fully equipped kitchens, double-basin stainless steel sinks, fireplaces, skylights, and a patio or balcony. Community amenities include a swimming pool, spa, fitness center, club house, recreation room, and picnic and barbeque areas. The property is fully occupied.
The Villages at Bonita Glen, located near Interstate Route 805 and State Route 5, is fewer than 10 miles from downtown San Diego and fewer than 16 miles from Sea World. Top employers in the immediate area include 32nd Street Naval Station, Southwestern Community College, San Diego Police Department and San Diego Trolley, Inc.
At 3.8% in March, vacancy in the San Diego metro area has decreased 70 basis points over the last year. Average monthly asking rents reached $1,712, advancing 5.4% across the area annually.
"This property is well-maintained and located in between downtown San Diego and San Ysidro, an area that is quickly becoming quite popular," said Mogharebi. "These factors, among others, were key attributes that attracted the buyer, and our team was able to leverage our proprietary market intelligence and extensive experience to close the sale efficiently."
Mogharebi also closed for the sale of Oasis at Bermuda Dunes, which sold for $19 million and is located at 79090 42nd avenue in Bermuda Dunes, California. The buyer was Pacific Development Partners of San Juan Capistrano, the seller was Tri-Millennium Properties of Los Angeles. Built in 2005 by the seller, the 140-unit property features one- and two-bedroom layouts. Unit amenities include raised ceilings, granite countertops, and washer and dyers, and community amenities consist of a swimming pool, business center, playground and media room. The buyer plans to put new property management in place to increase revenues through renovations and operational efficiencies.
Finally, Mogharebi brokered the $16.9 million sale of Harbor Grand, located at 15120 Grand Avenue in Lake Elsinore. The buyer was Providence Capital Group in Encinitas, who purchased the property as the upleg of 1031 exchange. The seller was Positive Investments of Arcadia. The previous owner acquired the property out of foreclosure and completed upgrades throughout the community. The 192-unit property features one-, two- and three-bedroom layouts. Unit amenities consist of fully equipped kitchens, walk-in closets, vaulted ceilings, and a patio or balcony, and community amenities include two swimming pools, spas and laundry facilities, a courtyard and a playground.
Vacancy in the Inland Empire metro area was 4.5% at the end of the first quarter, 30 basis points lower than a year ago. Average asking rents have increased 5.4% since the first quarter of 2014, reaching $1,324 per month in March this year.
Berkadia, a joint venture of Berkshire Hathaway and Leucadia National Corporation, is an industryleading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia is among the largest, highest rated and most respected primary, master and special servicers in the industry. [GlobeSt]
- Value-Add Multifamily Fetches $44M
MORENO VALLEY, CA—Los Angeles-based investor MJW Properties has purchased the Broadstone Overlook from an unnamed institutional multifamily owner for $44 million. The value-add sale attracted 160 interested investors, and resulted in dozens of tours. According to the seller’s sales team at Berkadia, this transaction illustrates the high demand for value-add multifamily in suburban markets.
"Original ownership had invested in the property with a 7-year horizon; at the 7th year they decided to wait another year as operations were steadily improving and new residents were paying the increased rate for interior improvements, including new hardwood floors," Dean Zander, managing director at Berkadia, tells GlobeSt.com. "During this time they also upgraded the common areas including refreshing the leasing office, clubhouse, business center, fitness center and pool/spa areas." Zander represented the seller in the transaction along with his colleagues Vince Norris and Margie Molloy.
Located at 12963 Moreno Beach Drive within Rancho Belago submarket of Moreno Valley, the 256-unit class-A property sits on 16 acres and features a community lounge, pool. Spa, fitness center and business center. It has a mix of one-, two- and three-bedroom apartment homes in 15 building. Recently, the seller began making significant interior renovations, adding hardwood floors and stainless steel appliances. The buyer plans to continue making the renovations to the interior units.
The marketing process was incredibly competitive. The asset was already consider class A, and has experienced escalating rents because of the ongoing interior improvements. Although 160 investors inquired about the sale, some thought that rental rates were reaching a peak. "Quite a few of the prospective investors felt the rents were trending towards the high end of the market and had more perceived risk than upside," adds Zander. "However, the strongest collection of prospects actually realized the compelling new job formation situation in Moreno Valley was creating an entire new class of renters who wanted and could afford all the finest amenities both in the common areas and in the unit interiors. We had interested investors from all over Southern and Northern CA, plus the Pacific Northwest and even Chicago, come tour the asset and submit offers. The successful bidder has a very long-term ownership perspective and understands the job formation, rent growth and demographics trends are clearly in the owner's favor." In the end, the asset drew several competitive offers.
Alliance Residential built this property in 2007. In December of last year, a similar Alliance-built property traded hands. An institutional buyer bought Lasselle Place for $45 million in a sale led by Zander. [GlobeSt]
- Berkadia Negotiates Sale of Multifamily Property in Kansas City
KANSAS CITY, KAN. — Berkadia has brokered the sale of Waterstone Apartments, located at 1100-1056 County Line Road in Kansas City, for an undisclosed price. The property was 90 percent occupied at the time of sale. The buyer was Waterstone of Kansas City, Mo., with Worcester Investments serving as general partner. The seller was VIRTU KC1 Associates of Larkspur, Calif. The 372-unit property was built in 1969 and features one-, two-, and three-bedroom layouts. Unit amenities include fireplaces, fully equipped kitchens, decks or patios and walk-in closets. Community amenities include two swimming pools, a playground and covered parking. Phillip Brimble of Berkadia's Kansas City office brokered the sale. [Real Estate Business Online]
- Washington investor buys Beaverton apartments for $64M
A Vancouver, Washington real estate investment firm has scooped up two apartment communities in Beaverton and has plans for a substantial remodel.
Holland Acquisition Co. LLC of Vancouver acquired Wyndham Park I and II, two apartment communities on Southwest Scholls Ferry Road and Southwest 147th Terrace in Beaverton, for a combined total of $63.9 million.
The seller was KI-Wyndham Park LLC of Liberty Lake, Wash. Phil Oester and Joe Nydahl of Berkadia facilitated the transaction.
Wyndham Park I sold for $34.5 million, reflecting a per-unit price of $151,342, and Wyndham Park II sold for $29.4 million, reflecting a per-unit price of $150,738.
According to Berkadia, Holland plans to renovate the properties' units and common areas and merge the two into one cohesive garden-style community. This acquisition involved an assumption of two Freddie Mac loans.
"This is a great example of creating value through expansion," Oester said in a release. "This is an ideal value-add property where a small investment in interior upgrades and repositioning the combined properties into a larger, amenity rich community can have big rewards."
Wyndham Park I is a 228-unit property that was built in 1996 and features one-, two- and three-bedroom layouts. Unit amenities include fully equipped kitchens with stainless steel appliances in select units, breakfast bars, balconies or patios, washer and dryer units and large closets.
The community's amenities include two swimming pools, a Jacuzzi, sauna, wading pool, clubhouse, playground, fitness center, barbecues, a business center and bicycle storage.
Wyndham Park II is a 195-unit property that was built in 1987. Unit amenities include fully equipped kitchens, fireplaces, balconies or patios, storage, stacked washer and dryer units and private entries in select units.
Community amenities include a swimming pool, sauna, Jacuzzi, fitness center, clubhouse, playground, car care areas and garages.
Wyndham Park I and II share an entryway across from the Murray Scholls Town Center.
According to Berkadia, the Portland metro area vacancy tightened 40 basis points over the last three months to 3.8 percent in March 2015. Monthly asking rents advanced 6.7 percent across the metro area annually, with the Beaverton submarket leading the increase at 9.8 percent to an average rent of $1,151. [Portland Business Journal]
- MF Investors Look to Middle America
OMAHA, NE-Multifamily communities in the top US markets have been hot commodities for some time now, and the compression of cap rates there has caused many coastal investors to begin looking for opportunities in the nation's interior. Grandridge 930, LLC of Brooklyn, New York, for example, just bought the Grandridge Apartments, a multifamily property located at 5439 N. 100th Plaza in Omaha, NE.
"The investor inquiries seem to be up more than 50% from a few years ago, with a lot of interest coming from out-of-state buyers with no previous presence in Omaha," Ralph DePasquale, the Chicago-based managing director for Berkadia, tells GlobeSt.com. "These markets don't have a great deal of institutional following and are dominated by leveraged buyers."
DePasquale and director Laurel Wallerstedt of the Kansas City office worked together to complete this sale. The property was marketed without an asking price and sold on June 29, 2015.
"This was an appealing investment to the buyer due to the size and many value-add opportunities the property offers," he adds. “The acquisition marked the buyer's first investment in the Omaha market."
The price was not disclosed. The seller was a private investment partnership based in Salt Lake City, UT.
Built in 1974, the property's 470 units offer one-, two-, and three-bedroom floor plans in both apartment and town-home layouts. Unit amenities include fully equipped kitchens, balconies or patios, internet access and ceiling fans. The community has a clubhouse with a swimming pool, spa, tanning beds, laundry room, fitness center and extra storage.
Grandridge Apartments is adjacent to I-680, fewer than four miles from Westroads Mall and about seven miles from the University of Nebraska at Omaha. Top area employers include University of Nebraska Medical Center, Offutt Air Force Base, Children's Hospital and Medical Center and Blue Cross Blue Shield of Nebraska.
"Investors are always looking for class B properties in class A locations," DePasquale says. "Many of these markets have not seen much new development, so the majority of the product is a little older but offers investors the kind of returns that they desire." [GlobeSt]
- Berkadia Markets Student Housing Community in Tempe, AZ
Berkadia is pleased to announce the exclusive listing of The Mark, a 161-unit, 229-bed student housing community, located at 1115 East Lemon Street in Tempe, AZ. The seller has engaged Mark Forrester, Ric Holway and Dan Cheyne of Berkadia's Phoenix office and Kevin Larimer of Berkadia's Michigan office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Rising rents drive value of Seattle 'trophy' apartment complex up 52 percent
From the outside, the 66-year-old apartment complex on Seattle's First Hill doesn't seem like much to look at, but a Walnut Creek, California investment company saw things differently.
This week the company, Sequoia Equities, paid $92.9 million for the full-block property that's named for the address, One Thousand 8th Avenue. That's $32 million more than what the asset sold for just three years ago.
The seller had drawn up plans to expand the 351-unit property by another 256 units, but that's not the main reason for the dramatic increase in value. It was spurred by something more basic: rising rents.
That the buyer paid 52 percent more for the property than the seller did is a good indication that investors expect rents will continue to climb in Seattle even though developers are bringing thousands more competing units to the market.
Sequoia Equities bought One Thousand 8th from Acacia Capital Corp. The 1949, steel-and-concrete complex is made up of two 14-story towers, and its location on the west slope of First Hill gives the property dramatic skyline views from the rooftop decks and some of the apartments.
Real estate broker Kenny Dudunakis, a senior partner in the Seattle office of Berkadia, said One Thousand 8th is one of about a half dozen "trophy assets" for properties of this size and age. [Puget Sound Business Journal]
- Rockside Place Apartments in Garfield Heights, OH Listed by Berkadia for $10.03M
Berkadia is pleased to announce the exclusive listing of Rockside Place, located at 12205 Valley Lane in Garfield Heights, OH. The asking price for the 324-unit apartment community is $10,030,000. The seller has engaged Rick L. Vidrio and Rick Brace of Berkadia's Michigan office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Berkadia's Michigan Office Markets Three-Property Portfolio in Elyria, OH
Berkadia is pleased to announce the exclusive listing of the Cleveland West Three Portfolio, a three-property, 360-unit multifamily portfolio, located in Elyria, OH. The seller has engaged Rick L. Vidrio and Rick Brace of Berkadia's Michigan office to market the portfolio. For additional information, please visit the [Dedicated Property Website.]
- Grand Rapids Sees Another Big MF Sale
GRAND RAPIDS, MI—Ramblewood Apartments, a multifamily property in suburban Wyoming, MI, just outside of Grand Rapids, just sold for $100.4 million, according to officials from Berkadia, who brokered the sale. MLive.com reports that the new owners are a Georgia-based investment group, making this the second time in just a few months that an outside investor plunked down more than $100 million for a multifamily community in the area.
As reported in GlobeSt.com, in December Marcus & Millichap helped complete the $102 million sale of the Grand Rapids 6 Apartment Portfolio, a 1,651-unit portfolio of six multifamily properties located in and around the city. Officials from the firm said it was the largest commercial real estate transaction recorded in the state up to that point in 2014.
Berkadia's managing director Rick Vidrio, senior directors David Walstrom and Rick Brace, and director Jason Krug of the Detroit office negotiated the sale of Ramblewood. Senior managing director Pete Benedetto, managing director David Sibbold, and assistant vice president Jillian Maki of Berkadia's Detroit office arranged the acquisition loan through Fannie Mae.
Built in phases between 1971 and 1983, Ramblewood is located at 4277 Stonebridge Dr. SW and features 1,710 studio, one-, two- and three-bedroom units. Featured amenities include balconies and patios, vaulted ceilings, fireplaces, skylights, cable and internet with free WiFi, and walk-in closets. Community amenities include a community center with an indoor pool, an outdoor pool with a sundeck, a tennis and health club with indoor and outdoor courts, basketball and volleyball courts, a playground, and 188 acres of woods and a pond.
"The Grand Rapids rental market is registering historically low vacancy and healthy rent growth," says Walstrom. "The market's appeal, coupled with the potential to add value through strategic unit upgrades, made Ramblewood an extremely attractive investment." [GlobeSt]
- Berkadia Brokers MF Sales in Austin, Houston
AUSTIN--Berkadia announced today the sales of Lantana Trace, located at 1830 Rundberg Lane West and 9315 Northgate Blvd. in Austin, and Crystal Falls, located at 10950 Westbrae Parkway in Houston. Director Forrest Bass of the Austin office negotiated the transaction.
The Austin property was 97 percent occupied at the time of the sale. Built in 1972, the 112-unit property features studio, one- and two-bedroom floor plans. Each unit features kitchens with tile backsplashes and double sinks, tiled showers, large walk-in closets, wood-grain vinyl flooring, ceramic tile, ceiling fans and mini-blinds. Community amenities include two swimming pools, two laundry facilities, barbecue and picnic areas, courtyards with mature landscaping, perimeter fencing with controlled-access gate and nearby public transportation.
The community is located near State Route 183 and Interstate 35.
The seller was 1830 W. Rundberg LLC and 9315 Northgate LLC of Austin. The buyer was ACA Lantana Trace LLC, also of Austin.
The seller originally purchased the asset as two separate, 56-unit properties in 2012 and 2013, both at discounted per-unit prices. Since those acquisitions, the operator combined the communities to run as one property. The property was well maintained and had a long history of healthy operation.
The buyer owns and manages other properties in the immediate area and believes that current rents are below the market rate, leaving room for measurable rent growth. The new owner also plans minor interior and exterior renovations.
"The North submarket in Austin continues to see a lot of transaction activity and strong economic fundamental," Bass said. "We have closed four other recent multifamily transactions in the area, and just went to market with another large multifamily asset."
Vacancy in the Austin metro lowered 20 basis points to 4.8 percent in the first quarter. At $1,101 per month in March, average asking rent was up 1.3 percent since December.
In Houston, managing directors Chip Nash and Gregory Austin, director Wade Schmitz and associate director Bob Heard negotiated the Crystal Falls transaction. The property was 96 percent occupied at the time of the sale.
Built in 1984, the 165-unit property features studio, one- and two-bedroom floor plans. Each unit features fully equipped kitchens and balcony or patio. Select units have washer and dryer connections, fireplaces and vaulted ceilings. Community amenities include a swimming pool, Jacuzzi, fitness center and controlled-access gate.
The community is located near Braeswood Boulevard, State Route 59 and Beltway 8.
The seller was Emerge Crystal Falls LLC of Ladera, CA. The buyer was Bear Valley Delaware Crystal Falls LLC of Sausalito, CA.
The seller was at the end of the investment timeline, while the acquisition provided a value-add opportunity for the buyer. The buyer plans to upgrade the unit interiors.
Houston-metro vacancy tightened 30 basis points in the last three months to 5.4 percent by the end of the first quarter. Average asking rents advanced 0.8 percent to $1,052 per month in the first quarter. [GlobeSt]
- Unpriced Student Housing Community in Johnson City, TN Listed by Berkadia
Berkadia is pleased to announce the exclusive listing of Heights at 1301, a 132-unit student housing community, located at 1301 Seminole Drive in Johnson City, TN. The seller has engaged Kevin Larimer and Michael Tassoni of Berkadia's Michigan office and Royce Emerson of Berkadia's Alabama office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Berkadia Brokers $14.7M Sale of Apartment Community, Arranges $11.8M Financing
RICHMOND HILL, GA. - Berkadia has brokered the sale of and arranged financing for Ashton of Richmond Hill, a 232-unit affordable housing property located at 505 Harris Trail in Richmond Hill, a suburb of Savannah, Ga. The community's amenities include a clubhouse, tennis court, volleyball court, picnic area, playground, swimming pool, community laundry room and 24-hour emergency maintenance. Savannah-based Kole Management Co. purchased the property from Ashton Partners GA LLC for $14.7 million. Andrew Mays, Paul Vetter, Mark Boyce and Cole Whitaker of Berkadia brokered the transaction. Berkadia also arranged acquisition financing for the transaction. Lloyd Griffin, Frank Brown and Brett Bennett of Berkadia arranged the $11.8 million Freddie Mac loan with a fixed interest rate of 4.16 percent and a 30-year amortization schedule. [Real Estate Business Online]
- Historic Family-Owned Landmark On 600 Block Of Georgia Avenue To Be Sold
An historic family-owned landmark on the 600 block of Georgia Avenue, including the Hardwick Hogshead Apartments and the Robinson Apartments, is being sold.
Marcus D. Lyons, director at Berkadia Real Estate Advisors, who brokered the transaction, confirmed the sale of the Georgia Avenue real estate. The parties involved, both closely-held LLCs, have agreed not to disclose terms of the transaction. This follows a number of apartment sales in the downtown Chattanooga region.
"There is a booming demand to provide affordable rental housing for young professionals and others who want to work and live in the heart of the city," said Mr. Lyons. "These two apartment buildings have a long history of providing a quality living experience for their residents, and my client is committed to carrying that reputation forward."
Fred Robinson, representing the owner of the Fountain Square real estate, expressed mixed emotions about selling at such an exciting time in Chattanooga.
"We have not been the traditional landlord, in that some of the property has been in this family since ice was delivered by horse and carriage," said Mr. Robinson. "Long term ownership seems to be a rarity in investment real estate today. Collectively, we have leased to several generations of Chattanoogans, and our experience has been overwhelmingly positive."
Mr. Robinson reflects on memories of past residents who recall hearing of the bombing at Pearl Harbor while living in one of their apartments, having their tonsils removed in one of the property's past medical offices, and rumors of hidden whiskey in the property's basement during the Prohibition.
Both apartment buildings underwent historic renovations a number of years ago, early in the renaissance of downtown Chattanooga, and great detail was taken to make sure the original historic detail of the design was preserved. The company is looking forward to transitioning ownership over to another local group which has great ideas for the next century. [The Chattanoogan]
- Berkadia Bolsters Investment Sales Capabilities in Florida With Addition of Three Professionals
Berkadia announces the addition of three investment sales professionals to its offices in South Florida: Tal Frydman joins as a senior director and Fernando Polanco and Yoav Yuhjtman join as directors. All three will work closely within the integrated platform of investment advisors and mortgage bankers across all Florida offices, including Senior Managing Director Mitch Sinberg and Investment Sales Advisor and Managing Director Cole Whitaker from the Orlando office.
"We're constantly looking for ways to improve our integrated mortgage banking, investment sales and servicing platform, whether that's adding new products or personnel," said Ernest Katai, Executive Vice President and Head of Production at Berkadia. "All three of these individuals bring a vast array of investment sales experience and provide depth to our existing team in South Florida. In tandem with our mortgage banking professionals, we're truly a one-stop shop for all of our clients' needs and will continue to integrate our investment sales and mortgage banking capabilities in offices across the country."
Prior to joining Berkadia, Frydman was a first vice president of investments in Marcus & Millichap's Fort Lauderdale office and also a senior director in the company's National Multi Housing Group. In his 16 years with the company, he sold multifamily investment properties in Florida and across the U.S., selling more than $500 million in commercial real estate and over 5,000 units. Yuhjtman, also joining with Frydman, was previously an associate and specialized in the sale of multifamily investment properties throughout Florida.
Polanco was previously the marketing director at Carroll Organization, a privately held owner and operator of high-quality multifamily real estate headquartered in Atlanta. While with Carroll, he was responsible for the due diligence and marketing implementation for 15 asset purchases totaling 5,550 units. The total value of properties acquired was $615 million, with $250 million in equity investment. He brings more than 10 years of director and management level sales and marketing experience to Berkadia.
"I am excited to join Berkadia's South Florida offices along with Fernando and Yoav, and look forward to leveraging the company's integrated platform with current and future clients," said Frydman. [Berkadia]
- Westwood Apartments in Waukegan, IL Marketed by Berkadia's Chicago Office for $8.3M
Berkadia is pleased to announce the exclusive listing of Westwood Apartments, located at 2720-2732 Westwood Drive in Waukegan, IL. The asking price for the 132-unit apartment community is $8,300,000. The seller has engaged Ralph DePasquale of Berkadia's Chicago office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Berkadia Presents Stonecrest at Double Oak Mountain in Birmingham, AL
Berkadia is pleased to announce the exclusive listing of Stonecrest at Double Oak Mountain, a 315-unit apartment community, located at One Stonecrest Drive in Birmingham, AL. The seller has engaged David Oakley and Royce Emerson of Berkadia's Alabama office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Unpriced Asset in North Charleston, SC Listed by Berkadia
Berkadia is pleased to announce the exclusive listing of Palm Pointe, a 112-unit apartment community, located at 2561 Fassitt Road in North Charleston, SC. The seller has engaged Mark Boyce of Berkadia's South Carolina office and Andrew Mays and Paul Vetter of Berkadia's Atlanta office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Berkadia sells multifamily property in Tucson for $14.3M
Berkadia sold The Place at Tierra Rica, a multifamily property located at 3201 and 3225 West Ina Road in Tucson, Arizona. Senior Managing Director Art Wadlund and Associate Clint Wadlund of the Tucson office facilitated the sale. The property sold for $14.3 million on May 28, 2015. The sale price reflects a per-unit price of $49,479, or approximately $69 per square foot.
The buyer was Aspen Square of West Springfield, Massachusetts. The seller was MC Companies of Scottsdale, Arizona.
"Investment activity in the Tucson area has been heating up," Wadlund said. "Recent growth in the local job market over the first quarter of 2015 has driven rental demand, and we expect that to be an ongoing, key factor in investment activity."
Built in 1988, the property's 288 units offer one-, two-, and three-bedroom floor plan options. Unit amenities include ceiling fans, dishwashers and refrigerators. Select units offer full sized washers and dryers, breakfast bars, and built-in bookcases. Community amenities include a clubhouse, business center, fitness center, lighted tennis court, two spas, three swimming pools, laundry facilities, picnic areas and WiFi hot spots.
The Place at Tierra Rica is located near Interstate Highway 10 and is fewer than two miles from both the Foothills Mall and the Omni Tucson National Resort. Top area employers include Northwest Medical Center, Foothills Mall and Omni Tucson National Resort.
Metro-wide apartment vacancy in Tucson fell 50 basis points year-over-year to 8 percent at the end of the first quarter of 2015. Operators advanced rents by an average of 1.2 percent during the first quarter to $666 per month, as rental demand jumped. [AZ Big Media]