"We've seen a huge amount of California buying pressure," Scott Trevey, the buyer's representative of Re/Max Commercial Investment in Phoenix, tells GlobeSt.com. "In the fourth quarter of 2003, 50% of all closed multifamilies in Phoenix had buyers withCalifornia addresses."
The California buying trend in and around Phoenix owes much to strong cap rates and gross rent multipliers, not to mention rising appraisals throughout the region, says Trevey. "Properties that are decent are going around here," Trevey says. "In California, nothing in their market makes any sense."
Located at 31 W. Second St. here, Irving Manor features 20 units in a two-story format, consisting of 12 one-bedroom units and eight two-bedroom units. One-bedroom units are about 700 sf and rent for $475 per month. Two-bedroom units are 800 sf and get $550 in rent.
Located in historic Mesa, Trevey says the complex sits on a quiet street with a large parkway that runs the length of the street. Irving Manor is additionally located close to the Mesa Community Center, which recently has undergone a multi-million-dollar update.Irving Manor had only two units vacant at closing. Multifamily vacancies in Mesa in general stand around 10%. The complex's former owner recently installed new air-conditioning units, rehabilitated the pool and upgraded a second-floor safety rail.
Trevey represented Muir Properties in the deal. Darrell Moffitt of Marcus & Millichap's Phoenix office handled talks for the seller.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
