The Los Angeles-based investor is interested only in buying apartments with a low per unit cost, says Alon Shnitzer, a investment broker with Marcus & Millichap's Phoenix office, who teamed with Peter Katz to steer the sale.
The 75%-leased La Mesa Village sold for $32,129 per unit at a 5.28% cap rate, according to Shnitzer. "The buyer got a discount on the property because of the fixed-rate loan," he says. SRP Property assumed Fannie Mae mortgage through 2009, with a 7.8% fixed-rate interest and put down only 10%.
Despite the loan assumption requirements, Shnitzer tells GlobeSt.com that La Mesa Village received seven offers within two weeks of being on the market. "You can't find apartments that were built in 1986…that are a decent quality at this price," he says.
Situated on 9.4 acres, La Mesa Village consists of 160 one-bedroom units and 96 two-bedroom apartments, averaging 678 sf. Monthly rents average $546.
According to Shnitzer, SRP Property plans to invest at least $400,000 in upgrading and renovating the complexes parking lot, security and unit interiors. The garden-style development is located about 1.5 miles from US Highway 60 and Loop 202.
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