"You could take anyone of these properties by themselves and it was a record price for West Phoenix. The numbers were screaming," Dan Dulin, a multifamily specialist in Marcus & Millichap's Phoenix office, tells GlobeSt.com about the 2109 W. Colter St. property. "We were going to get a higher return at the end of the day if we spun off a four-plex."
Rebhi and Wardeh Abdelmuti of Huntington Beach, CA, purchased a four-unit building for $275,000 from sellers Scott and Susan Voss of Chandler. The buyers obtained a 30-year, $220,000 loan from the Transnational Financial Network Inc. of San Francisco,and closed $10,000 below the original ask.
At the same time, Pavel Isfan, a Phoenix buyer, purchased the remaining 26 units for $1.6 million, approximately $30,000 below the list. Both portions were marketed for two weeks and received multiple offers, says Dulin, who represented all parties in thenegotiations.
"Literally I had multiple offers on both properties and at the same time I had many people telling me the prices were ridiculous and I would never get it. Then in came these offers that proved everybody wrong," Dulin adds.
All units were filled at sale time. Rents in the 4,793-sf four-plex average $615; renters in the remaining 30,780 sf of the asset typically pay $680.
The 26-unit portion originally was condo mapped, enabling the owner to sell off individual condos in the future. Dulin says the seller decided to spin off the four-plex since it was not set up for condo sales although it had an individual parcel identification. Stabilized and well maintained at the time of purchase, both portions will remain part of the Camelback Gardens complex.
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