The 34-building apartment community is located at 11050 Cynthia Circle. The property was 95% occupied at the time of sale. David Casper of Grubb & Ellis--who worked both sides of the transaction with Bruce Furniss, Michael Shustak and John Nguyen--says both buyer and seller have reason to think they got a good deal.
The seller obtained a high-water market price of $112,878 per unit for a class B property in a comparable sub-market, he says. The buyer achieved a stabilized second-year capitalization rate in excess of 9% with lots of positive leverage and a long-term development opportunity.
Many of last year's two to three year holders have become today's five to seven year holders, according to the brokers. They add that a trend is afoot among investors to migrate from quick-turn type deals to patient mid-to-long term investments.
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