"We were originally in escrow at $9 million. The property used to be 310 units," Neil Sherman, amultifamily specialist at Sperry Van Ness in Phoenix, tells GlobeSt.com. "In March of '03, there was a gas explosion that leveled an eight-plex and left the building at 302 units. That threw the deal into a tailspin."
Built between 1959 and 1971, the 28-building complex is positioned on 10 acres at 2928 E. Osborn Rd. The unit mix consists of 23 studio apartments; 99 one-bedroom units; 32 two-bedroom, one-bathroom units; and 148 two-bed, two-bath units. Monthly rent ranges from $461 to $684. Thirty-seven units were vacant at closing.
SRP Property acquired a short-term bridge loan for $6 million at approximately 6% interest from the Long Beach, CA-headquartered Farmers & Merchants Bank to help close the deal, according to Sherman. The complex will undergo $1 million in improvements over the next year.
In March 2003, a recently evicted handyman allegedly lighted a disconnected natural gas line in his unit, causing the dual explosions that demolished the entire building. Despite the tragedy, Sherman notes the sale is part of an ongoing multifamily buying spree throughout the Phoenix market as exchange buyers seek out value-add opportunities. Sherman represented both the buyer and seller in the deal.
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.
