"It's pretty rare to find something that's this beat up. They're out there, but there's not a lot ofproperties like this one," Bill Hahn, a vice president with Sperry Van Ness in Phoenix, tells GlobeSt.com about the purchase from William Douglas of Colorado.
Located on about 8.7 acres at 5957 W. Keim Dr., Walnut Grove was built in 1962. The 40-building complex includes 16 studio apartments; 42 one-bedroom, one-bath units; 90 two-bedroom, one-bath units; and 12 three-bedroom, one-bath units. Rents range from $410 to $760 per month.
The class C complex is the first acquisition in the Phoenix market for Hermanson, which is very active in Southern California. The owner hopes to turn the property around on a quick timetable, tackling issues of vandalism, maintenance problems and leasing the complex back up. The potential for a return does exist, with the complex's location near US Highway 60 south of downtown and close proximity to Glendale's two major sports stadiums.
"Unfortunately, the management company did a really bad job for the previous owner and he did not have the resources to put it back together again," Julie Vaughn, a vice president with Sperry Van Ness in Phoenix, tells GlobeSt.com. "They (Hermanson) essentially got it at a discount because of the damage done to the property."
Vaughn adds that Hermanson understands the Glendale market and its potential to turn around over the next two years as population growth continues. With many buyers more interested in less-expensive multifamily properties, the new owner may also decide to break the complex into several smaller apartment communities and sell each one at a future date, Vaughn says. Hahn represented the Hermanson Inc. while Vaughn represented the seller in the deal.
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