Richard and Kristina LaBeske of Chino Hills, CA, took over the 1964 complex from Paul Brock of Capitola, CA. Each party closed the deal as part of a 1031 Exchange.
"It was a pretty straight-forward deal. It's a building that the seller had redone and built up, and it since has been operating well," Greg Thielen, a senior investment adviser with Hendricks & Partners in Phoenix, tells GlobeSt.com. Thielen represented the seller while Donnie Plunkett of Phoenix-based Congress Realty represented the buyer.
Hampton Court is located at 426 W. 9th St., in a predominantly middle-class neighborhood and in close proximity to a hospital. The two-story complex comprises 11,592 sf in 26 studio units and a single one-bedroom unit attached to an on-site leasing office. Studios are about 417 sf and rent for $435 per month including utilities.
Brock had originally bought the property in January 2003 for $550,000. Since then, he's replaced the chiller system and finished other needed maintenance improvements. Two units were available at the time of closing.
While metro Phoenix of late has suffered from high multifamily vacancy rates, Mesa has experienced the worst of it, according to Thielen. However, the past few months have marked a slight turnaround, thanks in large part to declining rents and increased incentives to attract new renters. Multifamily vacancies in Mesa in 2003 hovered 16%.
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