"We see Phoenix as a market that has hit bottom and is on the upswing," Michael Sauter, CEO of S-J Management, tells GlobeSt.com. "As evidenced by first-quarter statistics, the Phoenix metro area continues to enjoy very healthy job growth."
Located at 5302 E. Van Buren St., the 185-unit complex was developed by the Greystone Group, led by Walter Eeds, president and CEO, and opened in August 2002. The complex was 93% leased at sale time.
Competing against at least six backup offers that all met the ask, S-J Management closed the deal in less than 60 days for $200,000 below the list price. Sauter says the company obtained a 10-year acquisition loan of nearly $12.8 million from National Life Insurance Co. of Montpelier, VT, at a 5.9% fixed-rate interest. GMAC Commercial Mortgage's Phoenix office serviced the loan.
The class A Belaflora complex consists of seven three-story buildings and one single-story recreation center. The mix includes 113 one-bedroom units and 72 two-bedroom units, averaging 785 sf. Monthly rents average $925.
Sauter says S-J Management's previous relationship with Eeds helped the investment company close on Belaflora. The company purchased the 180-unit Mandarina Apartments at 5402 E. Washington Ave. from Greystone in February for $15.5 million and the 170-unit Ventura Vista at 186660 N. Cave Creek Road in July 2003 for $14.3 million.
Sauter characterizes Phoenix's multifamily market as ripe for new investment, especially in light of encouraging job growth statistics. S-J Management, which manages 3,000 apartments units in Washington and Arizona, used in-house brokers to steer the deal. Sauter says the firm has preliminary plans for further investment in metro Phoenix. Bob Bruno and Mark Forrester, both with Phoenix-based Hendricks & Partners, handled negotiations for the seller.
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