"Even after we put it under contract, we had continued interest," Todd Braun, with CB Richard Ellis Inc.'s Phoenix office tells GlobeSt.com. "The seller was in a really good position to sell it to the next guy in line."
But the deal didn't fall through for Paul Van Driessche of Vista, CA, who bought the 36-unit multifamily property from seller, Christian and Magdalena Covaciu of Phoenix for almost $2 million. Both buyer and seller were in 1031 Exchanges.
Braun said the 1130 E. Butler Dr. complex, built in 1972, drew the interest of about eight prospective buyers because of its good condition and positive cash flow. "It's a solid property in good shape, "Braun said of the two-story complex near Northern Avenue and 12th Street. "It's a good performing asset."
In May 2002, the Covacius spent more than $2 million for the complex, using a 1031 Exchange to complete that deal as well. The property at that time was 91% occupied. It consisted of 44 units, with six in a separate building that was sold in another transaction.
The block-and-stucco complex is comprised of two-bedroom units, many with views of a nearby mountain preserve. With on-site laundry facilities, swimming pool and covered parking, the property is so popular with tenants that only one apartment was vacant at the time of sale, Braun said.
"When you look at the market right now, there are many (complexes) with high vacancies and high concessions, but this is a property that's performing," Braun noted. "It was a good, solid little deal." Braun along with Paul Gross and Brett Polachek, also with CB Richard Ellis' Phoenix office, represented both the seller and the buyer in the transaction.
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