"On a price per unit and a price per sf basis, they thought the asset was a good value," says Cliff David, an associate with Marcus & Millichap Real Estate Investment Brokerage Co., who represented the seller, Dehner Properties LLC of Peoria, AZ. "It is an added-value deal where they see the upside." The Munsons sold an apartment complex in San Diego to buy their first asset in the Phoenix Valley.
Ric Holway, a senior associate with Marcus & Millichap also represented Dehner Properties, which traded out of the 118-unit multifamily property to invest in California.
David tells GlobeSt.com that Country Village Apartments was on the market about 30 days and generated significant interest before the Munsons entered the picture. The 95%-occupied Country Village Apartments has 74 one-bedroom units and 44 two-bedroom apartments, ranging from 600 sf to 960 sf with average monthly rents of $525. The 22-buidling, single-story complex is situated on seven acres near Loop 101.
"There's a lot of growth in the Northwest Valley…a lot of new retail and new apartment complexes," David says. "But, there are not many class C apartment buildings in the area and developers will only be building class A apartment that require higher rents."
David tells GlobeSt.com that the Munsons will rehab the complex and install new management to achieve higher rents and generate upside. Jan Long of Phoenix-based Re/Max Commercial Investment represented the Munsons.
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