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$7M Sale Drives Multifamily Market Exit

PHOENIX-The Greater Phoenix Income Properties sells its last multifamily holding, the 274-unit Desert Sky Apartments along West McDowell Road. The buyer, also from Phoenix, gets the 80%-leased property at 10% below the asking price.

By Beverly Ford | Updated on March 23, 2003

PHOENIX-A Phoenix investment group plunked down $3 million in cash and assumed a $4-million financing package to take possession of the 274-unit Desert Sky Apartments in a deal that allowed Cascade Investments to divest of its Arizona apartment holdings.

The $7-million transaction bought Greater Phoenix Income Properties an 80%-leased property on 13 acres at a closing price that was 10% below the property’s asking price. The sale of the 4620 W. McDowell Rd. complex also ended Cascade’s investment in multifamily holdings in Arizona, Jerry Tenge, senior vice president with Grubb & Ellis Co.’s investment advisory division, tells GlobeSt.com. He said the Phoenix-based seller’s divesture of its Arizona apartment holdings will enable allow it to focus resources on shopping center investments.

For the new owners, the Class C property was a solid investment. “This property had a lot going for it,” Tenge said. “It has six different floor plans, a good unit mix and it’s a property that can be taken to the next level with some cosmetic work and better management.” He added the new owner, who has several other Valley apartment buildings in its portfolio, expects to do that with some minor renovations to the property’s façade and interiors.

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