Built in 1961, the complex consists of four one-bedroom units and eight two-bedroom units in three one-story structures. At closing time, the monthly rents were under market at $475 for the one-bedroom units and $500 for the two-bedroom units. The complex had two vacancies at the time of closing although the property normally is 100% leased.
The new owner plans to spend some money fixing up the interiors before raising rents up to market. Broker Greg Thielen with the Phoenix office of Hendricks & Partners believes the owner will raise monthly rents $25 for the one bedrooms and $75 on the two bedrooms.
Marketing time on the property was so short that "we never even put together a flyer," Thielen said. "It was almost the first person I showed it to. It's one of those deals where he knows it's under market and can fix it up and raise the rents up to market." A new loan was taken on the property with 25% down through Keystone Mortgage.
There's a bit of vacancy in the local rental market right, now running about 8% to 9% which is 3% higher than the market has been. Thielen and John Kobierowski, both with Hendricks & Partners, represented both the buyer and the seller, Canyon Gardens LP of Seaside, OR in the transaction.
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