McDowell Investment, headed by Patrick McDowell, is looking to buy an additional 1,500 units of class B and C properties by the end of 2005, says Cindy Cooke with Colliers International in Phoenix. She and Colliers' Bret Zinn brokered the deal for 909 W. Colter St.
Cooke tells GlobeSt.com that McDowell has had his eye on Phoenix via previous positions in which he handled real estate investments. "He's been watching Phoenix grow for a long time and he thinks now is the time to start buying again," she says.
Cooke says the off-market deal came together because she knew the owner, PSMCC LLC, a locally based investment group, was considering selling it and brought in an offer from McDowell, who assumed a Fannie Mae loan through Wachovia Bank for the takeover.
The class B complex is situated on 11.9 acres in a strong in-fill location with virtually no land available for new construction. It also is situated just one block from a future light rail station.
Built in 1972, Somerset Villa Apartments consists of 89 studios, 231 one-bedroom units and 64 two-bedroom units. The units average 667 sf and rent for $634 per month. The occupancy rate is 94%.
According to Cooke, Somerset Villa Apartments is in good shape and does not require any significant capital improvement. "It's just a real nice stable investment," she says, "and [McDowell] is hoping that when the market improves then he'll get a rental increase." McDowell Investments tapped locally based Bernard/Allison Management Services Inc. to manage the property.
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