"I think this is the biggest deal that closed so far this year," David Potarf, who has handled the sale with fellow Marcus & Millichap broker Dan Woodward. JRD Management and its affiliate, WWG Inc., had purchased the property, built in the 1980s at Interstates 25 and 224. The seller is Sequoia Equities, based in Walnut Creek, CA, Portarf says.
In 1998, Potarf had sold the property to Sequoia for $25.6 million. "That's pretty good appreciation for owning it for less than three years," Potarf tells GlobeSt.com. The project has just sold for $74,879 per unit or $110 per sf. "I think that's a record for per sf for an '80s project," he continues. "And the price per unit is pretty high for an '80s property.
Most of those properties have been selling for $50,000 to $60,000 per unit while some have been in the low $70,000s." Potarf says it would have commanded an even higher price because of its location at "Main and Main," but it has a large number of one-bedroom units.
Potarf says the new owners will be long-term holders. "They like the location and believe it is a good value in the long-term," Potarf told GlobeSt.com. "They're not going to flip it."
Potarf and Woodward have sold more than $200 million in apartments during the past year. "The apartment market continues to be as strong as ever," Woodward says.
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