"The seller was comfortable with this buyer not only because of the full price, but also because of the fact that they came into town and personally met with the seller and they did a really quick due-diligence program," Brian Smuckler, a senior associate with Marcus & Millichap in Phoenix, tells GlobeSt.com. Mitchell and Jennifer Conrad of Arvada entered a 60-day escrow with seller Prime Time Real Estate Investments LLC of Anthem, AZ, after seven days of marketing.
The property received five offers, most of them at the full list price. The Conrads obtained acquisition financing from LaSalle Bank Corp. of Chicago at 80% loan to value.
Built in 1962, Encanto Suites sits on 1.2 acres at 1840 W. Thomas Rd. The 26-unit garden-style complex contains 20 two-bedroom units at 1,100 sf, and six three-bedroom units at 1,300 sf. Monthly rents range from $650 to $775. Only two apartments were vacant at closing. The buyers were attracted to the larger-than-average apartment size for that market, says Smuckler.
The seller bought property 2.5 years ago and immediately undertook a $200,000-plus renovation program that basically leased up the asset and provided a stabilized turnkey product for the new owner.
Smuckler represented the Conrads, who just bought their first commercial property in Phoenix. Scott Trevey of RE/Max Commercial Investment in Phoenix negotiated for the buyer.
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