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256-Unit, Class B Complex Trades for $32,129 Per Unit

MESA, AZ-A Southern California investor spends about $8.2 million for La Mesa Village, which receives seven offers within two weeks of coming to market. The new owner, SRP Property, will invest another $400,000 into upgrades.

By Jennifer D. Duell | Updated on November 09, 2004

MESA, AZ-SRP Property Inc. has made its fifth buy in the Valley, paying Dallas-based more than $8.2 million to Westdale Asset Management for La Mesa Village, a 256-unit, class B asset located at 655 S. Mesa Dr.

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%.

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